Corporate Capital Trust II

CCT II (closed)

Investment objectives

Generate current income and, to a lesser extent, capital appreciation

Overview

CCT II is a non-traded business development company (BDC) focused on providing customized credit solutions to private middle market U.S. companies. The fund primarily invests in senior secured debt.

Adviser

FS/KKR Advisor, LLC


Pricing

Net asset value (as of 3/31/2018) $9.24
Annualized distribution rate 1 (based on net asset value) 6.33%
Annualized distribution amount 1 (as of 5/29/2018) $0.59
Distribution reinvestment price 2 (as of 5/29/2018) $9.24


View Pricing Disclosure For Footnotes 12
1The annualized distribution rate shown is expressed as a percentage equal to the projected annualized distribution amount per share (which is calculated by annualizing the regular weekly cash distribution per share as of the date indicated, without compounding), divided by CCT II’s net asset value (NAV) per share as of the date indicated. The annualized distribution rate and amount shown may be rounded. The payment of future distributions on CCT II’s shares of beneficial interest of common stock is subject to the discretion of CCT II’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions. For the three months ended March 31, 2018, 27.7% of CCT II’s distributions were funded through expense reimbursements. The determination of the tax attributes of CCT II’s distributions is made annually at the end of CCT II’s fiscal year, and a determination made on an interim basis may not be representative of the actual tax attributes of CCT II’s distributions for a full year. The actual tax characteristics of distributions to stockholders are reported to stockholders annually on Form 1099-DIV. CCT II’s total operating expenses and excise taxes as a percentage of average net assets was 8.06% for the year ended December 31, 2017.
2The distribution reinvestment price is the NAV per share as of the date indicated.

Performance – returns


Stockholder returns 1
Without sales charge, compounded monthly
YTD
2.1%
1 year
6.4%
3 years
Annualized
––
5 years
Annualized
––
Since inception
Annualized
8.3%
Cumulative total return
Since inception
18.8%
Cumulative total return 2
Since inception (with sales charge, compounded monthly)
13.1%
Cumulative cash distributions per share 3
Since inception
$1.26
Inception date
3/1/2016
As of 4/30/2018, unless otherwise noted. Numbers may be rounded.
Returns shown are historical only and are based on past performance. Past performance is not a guarantee of future results.
View Returns disclosure For Footnotes 123
1CCT II’s Stockholder Returns (Without Sales Charge) are the total returns an investor received for the highlighted period taking into account all distributions paid during such period, compounded monthly. The calculation assumes that the investor purchased shares at CCT II’s public offering price, excluding selling commissions and dealer manager fees, at the beginning of the applicable period and reinvested all cash distributions pursuant to CCT II’s distribution reinvestment plan (“DRP”). Valuation as of the end of each period is the redemption price pursuant to CCT II’s share repurchase program on such date. Stockholder Returns (Without Sales Charge) do not include selling commissions and dealer manager fees, which could total up to 4.75% of CCT II’s public offering price. Had such selling commissions and dealer manager fees been included, performance would be lower. Upon liquidation or redemption, market conditions may cause the actual values to be more or less than the values shown.

CCT II’s total expenses as a percentage to average net assets attributable to common stock was 8.06% for the year ended December 31, 2017.
2Stockholder Return (With Sales Charge) is the total return an investor received since inception taking into account all distributions paid during such period, compounded monthly. The calculation assumes that the investor purchased shares at CCT II’s public offering price, including the maximum selling commissions and dealer manager fees, at inception and reinvested all distributions pursuant to CCT II’s DRP. Valuation as of the end of the period is the redemption price pursuant to CCT II’s share repurchase program on such date. Upon liquidation or redemption, market conditions may cause the actual values to be more or less than the values shown.
3Cumulative cash distributions per share reflect the total regular cash distributions paid since inception on a per share basis. The payment of future distributions on CCT II’s shares is subject to the sole discretion of CCT II’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions.

Portfolio composition1

View Portfolio disclosure For Footnote 1
1As of 3/31/2018. Calculated as a percentage of fair value. Fair value is determined by CCT II’s board of trustees. Securities may be an obligation of one or more entities affiliated with the named company. Percentages shown are net of unfunded commitment amounts.

Key facts*

Inception date 3/1/2016
Closed to new investors 1/10/2018
Total AUM $184.46 million
Number of portfolio companies 88
Floating rate assets 1 76% of portfolio
Distribution frequency 2 Monthly
Liquidity 3 Quarterly tender offers
Tax reporting Form 1099-DIV
*As of 3/31/2018, unless otherwise noted.
View key facts disclosure for Footnotes 123
1Calculated as a percentage of fair value. Fair value is determined by CCT II’s board of trustees.
2Distributions are currently declared weekly and paid monthly. The payment of future distributions on CCT II’s shares of beneficial interest of common stock is subject to the discretion of CCT II’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions.
3CCT II intends to repurchase a limited number of shares pursuant to its share repurchase program. CCT II may amend, suspend or terminate its share repurchase program at any time. In addition, any such repurchases will be at the distribution reinvestment price on the date of repurchase.
View risk factors disclosure

Investing in CCT II may be considered speculative and involves a high level of risk, including the risk of a substantial loss of investment. The following are some of the risks an investment in CCT II’s common stock involves; however, you should carefully consider all of the information found in the section of CCT II’s prospectus entitled “Risk Factors” before deciding to invest in shares of CCT II’s beneficial interest of common stock.

  • Because there is no public trading market for shares of CCT II’s beneficial interest of common stock and CCT II is not obligated to effectuate a liquidity event by a specified date, if at all, it is unlikely that you will be able to sell your shares. If you are able to sell your shares before CCT II completes a liquidity event, it is likely that you will receive less than you paid for them. While CCT II intends to conduct quarterly tender offers for CCT II’s shares, only a limited number of shares will be eligible for repurchase and CCT II may amend, suspend or terminate the share repurchase program at any time.
  • CCT II invests in securities that are rated below investment grade by rating agencies or that would be rated below investment grade if they were rated. Below investment grade securities, which are often referred to as “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. They may also be difficult to value and illiquid.
  • CCT II’s distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to CCT II for investment. Any capital returned to stockholders through distributions will be distributed after payment of fees and expenses.
  • An investment strategy focused primarily on privately held companies presents certain challenges, including lack of available information about these companies.
  • Investing in middle market companies involves a number of significant risks, any one of which could have a material adverse effect on CCT II’s operating results.
  • A lack of liquidity in certain of CCT II’s investments may adversely affect its business.
  • CCT II is subject to financial market risks, including changes in interest rates, which may have a substantial negative impact on its investments.
  • CCT II has borrowed funds to make investments, which increases the volatility of its investments and may increase the risks of investing in its securities.
  • CCT II has limited operating history and is subject to the business risks and uncertainties associated with any new business.
  • CCT II is a long-term investment for persons of adequate financial means who have no need for liquidity in their investment. CCT II’s previous distributions to stockholders were funded in significant part from the reimbursement of certain expenses, including through the waiver of certain investment advisory fees that are subject to repayment to its former investment adviser, and CCT II’s future distributions may be funded from such waivers and reimbursements. Significant portions of these distributions may not be based on CCT II’s investment performance, and such waivers and reimbursements by FS/KKR Advisor, LLC may not continue in the future. If FS/KKR Advisor, LLC were not to reimburse certain of CCT II’s expenses, including through the waiver of certain of its advisory fees, significant portions of these distributions may come from offering proceeds or borrowings. The repayment of any amount owed to FS/KKR Advisor, LLC or CCT II’s former investment adviser will reduce the future distributions to which you would otherwise be entitled.

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