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 9/30/2019) $8.60
Annualized distribution rate 1 (based on net asset value) 6.80%
Annualized distribution amount 1 (as of 11/30/2019) $0.59
Distribution reinvestment price 2 (as of 9/30/2019) $8.55

Fund materials

KKR
SEC filings
All materials

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 quarterly 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 six months ended June 30 2019, 100% of CCT II’s distributions were funded through net investment income, on a tax basis. 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.
2The distribution reinvestment price is the NAV per share as of the date indicated.

Performance – returns


SHAREHOLDER RETURNS 1 As of 11/30/2019 YTD 1 YR 3 YRS 5 YRS SINCE
INCEPTION
3/1/2016
CUMULATIVE
TOTAL RETURN
since inception*
CUMULATIVE
TOTAL RETURN
since inception*
(with sales charge) 2
CUMULATIVE CASH DISTRIBUTIONS PER SHARE since inception 3
CCT II 5.8% 3.0% 4.1% 5.2% 20.9% 15.1% $2.19
* Compounded monthly
Numbers may be rounded. Returns shown are historical only and are based on past performance. Past performance is not a guarantee of future results. Returns less than one year are cumulative; all others are annualized.
VIEW RETURNS DISCLOSURE 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 quarterly. 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”). Since CCT II closed its offering to new investors in January 2018, and has since issued new shares only pursuant to its DRP, the calculation of Stockholder return (without sales charge) for the YTD and 1-Year periods assumes that the investor purchased shares at the beginning of the applicable period at a price based upon CCT II's DRP on such date. Valuation as of the end of each period is CCT II’s distribution reinvestment price on such date, which also equals the redemption price pursuant to CCT II’s share repurchase program for such dates the share repurchase program was in effect. 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 8.23% for the year ended December 31, 2018.
2Stockholder Return (With Sales Charge) is the total return an investor received since inception taking into account all distributions paid during such period, compounded quarterly. 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 each period is CCT II’s distribution reinvestment price on such date, which also equals the redemption price pursuant to CCT II’s share repurchase program for such dates the share repurchase program was in effect. 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
1Asset: As of 6/30/2019. Calculated as a percentage of fair value. Fair value is determined by CCT II’s board of trustees.
Industry: As of 6/30/2019. Calculated as a percentage of fair value. Fair value is determined by CCT II’s board of trustees.
Top 10 holdings: As of 6/30/2019. 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 $187.78 million
Number of portfolio companies 97
Floating rate assets 1 77% of portfolio
Distribution frequency 2 Quarterly
Liquidity 3 Quarterly tender offers
Tax reporting Form 1099-DIV
*As of 6/30/2019, 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.
2Commencing with the first quarter of 2019, regular cash distributions are currently declared and paid quarterly. Through March 31, 2019, regular cash distributions were declared and paid on a monthly basis. The payment of future distributions on CCT II’s shares of beneficial interest 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 historically repurchased a limited number of shares pursuant to its share repurchase program, which has currently been suspended. CCT II may reinstate, 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. CCT II historically repurchased a limited number of shares pursuant to its share repurchase program, which has currently been suspended. CCT II may reinstate, 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.
  • 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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