Corporate Capital Trust, a business development company that provides individuals the opportunity to invest in the debt of privately owned American companies, closed a new five-year senior secured term loan for $400 million.
JPMorgan Chase Bank, N.A. served as the lead arranger and administrative agent for the loan. Joint book runners and co-syndication agents on the loan also included: J.P. Morgan Securities LLC, Mizuho Bank, Ltd., HSBC Securities (USA) Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Bank PLC, and Greensledge Capital Markets LLC.
The term loan bears an interest rate of LIBOR plus 3.25 percent, with a LIBOR floor of 0.75 percent, and it was issued with a 0.5 percent original issue discount. The proceeds will be used to reduce the outstanding balances on the company's various revolving credit facilities and to fund new investments in portfolio companies.
In addition, Corporate Capital Trust amended its senior secured credit facility to increase its capacity from $600 million to $900 million. The committed capacity is presently at $490 million, representing lending commitments from 16 commercial banks.
"We are happy to be adding this new senior secured term loan as well as increasing the accordion loan," said Andy Hyltin, CEO of Corporate Capital Trust. "The five-year term loan extends the maturity profile of our outstanding debt and allows greater flexibility and access to capital so we are better able to take advantage of current and future investment opportunities, while maintaining appropriate leverage on the company's investment portfolio."
Corporate Capital Trust is an innovative non-traded business development company that provides individuals an opportunity to invest in privately owned American companies. The Company is externally managed by CNL and KKR and its investment objective is to provide shareholders with current income, and, to a lesser extent, long-term capital appreciation. The Company intends to meet its investment objective by investing primarily in the debt of privately owned companies, with a focus on originated transactions sourced through the networks of its advisors.
CNL Financial Group (CNL) is a leading private investment management firm providing global real estate and alternative investments. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $28 billion in assets. CNL is headquartered in Orlando, Florida.
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level.