UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): July 7, 2017
CORPORATE CAPITAL TRUST, INC.
(Exact name of Registrant as specified in its charter)
Maryland | 814-00827 | 27-2857503 |
(State
or Other Jurisdiction of Incorporation or Organization) |
(Commission File Number) |
(I.R.S.
Employer Identification No.) |
CNL Center at City Commons 450 South Orange Avenue Orlando, Florida 32801 |
||
(Address of Principal Executive Offices; Zip Code) |
Registrant’s telephone number, including area code: (866) 745-3797
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☒ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☒ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01. | Other Events |
NYSE Listing
As previously disclosed, the board of directors (the “Board”) of Corporate Capital Trust, Inc. (the “Company”) has determined that it is in the best interests of the Company and its shareholders to pursue a listing of its shares of common stock on a national securities exchange. The Company has been cleared to file an application, and has applied, to list its shares of common stock on the New York Stock Exchange (“NYSE”) under the symbol “CCT.” Subject to market conditions, final Board approval and NYSE approval, the Company currently expects to seek the commencement of trading of its shares of common stock on the NYSE (the “Listing”) in the period following receipt of shareholder approval of the proposals to be considered at the Company’s annual meeting, as described in the Company’s definitive proxy statement filed on May 25, 2017. There can be no assurance that the Company will be able to complete the Listing in any certain timeframe or at all.
Change in Distribution Rate
On July 7, 2017, the Board declared a distribution of $0.05958 per share to shareholders of record as of July 28, 2017, payable on or around July 31, 2017. The new distribution rate is expected to apply to future distributions declared by the Board. As a result, the annualized per share distribution rate has been decreased 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 also currently expects that distributions declared following the Listing will be paid on a quarterly instead of a monthly basis.
On July 10, 2017, the Company mailed a letter to its shareholders and sent an email to certain financial advisors of such shareholders, each of which further describes the change to the Company’s distribution rate and which are attached hereto as Exhibits 99.1 and 99.2, respectively.
Special Distributions
As of March 31, 2017, the Company had approximately $97 million, or $0.31 per share, of taxable income available for distributions. The Company currently expects to distribute a portion of its excess income to shareholders in the form of special cash distributions. The Company currently expects that two special distributions, each equal to $0.045 per share, would be paid to the Company’s shareholders and that, assuming a Listing has occurred, the first special distribution would be paid to shareholders of record on or around December 31, 2017 and the second distribution would be paid thereafter but within six months after the Listing. The payment of the two $0.045 special cash distributions totaling $0.09 will offset the $0.09 reduction in the distribution rate over the next 12 months.
The payment of any such ordinary or special cash distributions is subject to applicable legal restrictions and is within the sole discretion of the Board, and therefore, there can be no assurance as to the amount or timing of any such future distributions.
Distribution Reinvestment Plan
Pursuant to the Company’s current distribution reinvestment plan (the “Current DRP”), shareholders may elect to have the full amount of ordinary cash distributions reinvested in additional shares of the Company’s common stock. The Company currently expects that the Current DRP will be terminated or suspended prior to the Listing. Pursuant to the Current DRP, the Company will provide notice to participants in advance of any termination or suspension. The Company currently expects to adopt a new or amended distribution reinvestment plan following the Listing-Related Tender Offer described below. If and when the Current DRP is terminated or suspended and pending the adoption of any new or amended distribution reinvestment plan, shareholders who had elected to participate in the Current DRP will receive cash rather than shares of the Company’s common stock in respect of any cash distribution declared by the Company.
The termination or suspension of the Current DRP and the adoption of any new or amended distribution reinvestment plan is within the sole discretion of the Board, and therefore, there can be no assurance that Current DRP will be terminated or suspended or that any new or amended distribution reinvestment plan will be adopted on the timeframe described above or at all.
Termination of Share Repurchase Program
The purpose of the Company’s share repurchase program is to provide limited liquidity to the Company’s shareholders until a Listing or other liquidity event. In anticipation of the Listing and the concurrent liquidity it is expected to provide, the Company currently expects that the share repurchase program will be terminated following the regular quarterly tender offer anticipated to be commenced in July 2017 (the “July Tender Offer”) and not to conduct quarterly tender offers pursuant to the share repurchase program thereafter.
The termination of the share repurchase program is within the sole discretion of the Board, and therefore, there can be no assurance that the Company’s share repurchase program will be terminated on the timeframe described above or at all.
Listing-Related Tender Offer
The Company currently expects that it will conduct a tender offer (the “Listing-Related Tender Offer”) to purchase shares of common stock in connection with the Listing, pursuant to which the Company’s shareholders will be permitted to tender their shares of common stock for cash, subject to the terms and conditions of the Listing-Related Tender Offer. The Company currently expects that the Listing-Related Tender Offer will commence at the time of the Listing and will remain open for a period of at least 20 business days following the date of the Listing. The terms of any Listing-Related Tender Offer, including the size and pricing thereof, is within the discretion of the Board, and therefore, there can be no assurance that the Listing-Related Tender Offer will be commenced or completed on the timeframe described above or at all.
Potential Purchase of Shares by KKR Credit
KKR Credit Advisors (US) LLC (“KKR Credit”), the Company’s existing sub-advisor and, subject to shareholder approval, the Company’s sole investment advisor upon the Listing, has informed the Company that it or certain of its affiliates may purchase, following the Listing and completion of the Listing-Related Tender Offer, shares of the Company’s common stock in open-market transactions (which may include 10b5-1 plans), subject to restrictions under applicable law. However, there can be no assurance that KKR Credit or any of its affiliates will purchase any shares of the Company’s common stock.
Item 9.01. | Financial Statements and Exhibits |
(d) Exhibits.
EXHIBIT |
DESCRIPTION | |
99.1 | Letter to Shareholders, dated July 10, 2017. | |
99.2 | Email to Financial Advisors of Shareholders, dated July 10, 2017. |
Additional Information and Where to Find It
In connection with the matters described in this report, the Company has filed relevant materials with the Securities and Exchange Commission (the “SEC”), including a definitive proxy statement on Schedule 14A. The Company has mailed the definitive proxy statement and a proxy card to each shareholder entitled to vote at the shareholder meeting relating to such matters. SHAREHOLDERS OF THE COMPANY ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), AND ANY OTHER RELEVANT DOCUMENTS THAT THE COMPANY WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE, BECAUSE THESE MATERIALS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY AND THE MATTERS DESCRIBED IN THIS REPORT. The definitive proxy statement and other relevant materials (when they become available), and any other documents filed by the Company with the SEC, may be obtained free of charge at the SEC’s website (http://www.sec.gov), at the Company’s website (http://www.corporatecapitaltrust.com/investor-resources), or by writing to the Company at 450 S. Orange Avenue, Orlando, Florida 32801 (telephone number 866-650-0650).
The disclosure under the headings “Termination of Share Repurchase Program” and “Listing-Related Tender Offer” is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities of the Company. Each of the July Tender Offer and the Listing-Related Tender Offer will be made only pursuant to an offer to purchase, letter of transmittal and related materials (the “Tender Materials”). The full details of the each of the July Tender Offer and the Listing-Related Tender Offer, including complete instructions on how to tender shares of common stock, will be included in the Tender Materials, which the Company will distribute to shareholders and file with the SEC upon the commencement of each of the July Tender Offer and the Listing-Related Tender Offer. Shareholders are urged to carefully read the Tender Materials when they become available because they will contain important information, including the terms and conditions of each of the July Tender Offer and the Listing-Related Tender Offer. The Tender Materials (when they become available), and any other documents filed by the Company with the SEC, may be obtained free of charge at the SEC’s website (http://www.sec.gov), at the Company’s website (http://www.corporatecapitaltrust.com/investor-resources), or by writing to the Company at 450 S. Orange Avenue, Orlando, Florida 32801 (telephone number 866-650-0650).
Participants in the Solicitation
The Company and its directors and officers may be deemed to be participants in the solicitation of proxies from the Company’s shareholders with respect to the matters described in this report. Information about the Company’s directors and officers, as well as the identity of other potential participants, and their respective direct or indirect interests in such matters, by security holdings or otherwise, are set forth in the definitive proxy statement and other materials filed with SEC.
Forward Looking Statements
The information in this report may include “forward-looking statements.” These statements are based on the beliefs and assumptions of the Company’s management and on the information currently available to management at the time of such statements. Forward-looking statements generally can be identified by the words “believes,” “expects,” “intends,” “plans,” “estimates” or similar expressions that indicate future events. Important factors that could cause actual results to differ materially from the Company’s expectations include those disclosed in the Company’s filings with the SEC, including the Company’s annual report on Form 10-K for the year ended December 31, 2016, which was filed with the SEC on March 20, 2017. The Company undertakes no obligation to update such statements to reflect subsequent events.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CORPORATE CAPITAL TRUST, INC. | |||
a Maryland corporation | |||
Date: July 10, 2017 | By: | /s/ Chirag J. Bhavsar | |
Chirag J. Bhavsar | |||
Chief Financial Officer |
EXHIBIT INDEX
EXHIBIT |
DESCRIPTION | |
99.1 | Letter to Shareholders, dated July 10, 2017. | |
99.2 | Email to Financial Advisors of Shareholders, dated July 10, 2017. |
Exhibit 99.1
CNL Center at City Commons 450 South Orange Avenue Orlando, Florida 32801-3336 tel 407.650.1000 800.522.3863 www.CorporateCapitalTrust.com |
July 10, 2017 |
Investor Inquiries: P.O. Box 219001 Kansas City, Missouri 64121-9001 toll-free 866.650.0650 |
Dear Shareholder,
We are writing today with important information about your investment in Corporate Capital Trust. As you know, we filed a definitive proxy statement on May 25, 2017. This proxy contains a number of proposals that, if adopted, will effectively position the company to pursue a listing of its shares of common stock on a national securities exchange.
As part of the preparation for listing, our board anticipates making several changes that will impact you as a shareholder to better position the company for listing. In this letter, we outline further details of our expected timeline for the listing, a restructuring of the ongoing distribution rate, the ending of the share repurchase program and a future suspension of the distribution reinvestment plan. The company expects to issue a special distribution in two separate payments to supplement the new distribution rate.
Listing Timeline
While the company has communicated that an expected listing could occur within the next 12 months from the date of the company’s proxy, the company is now planning and taking key steps to execute a listing shortly after receipt of shareholder approvals for the proposals described in the company’s proxy statement. While we are working hard to make a listing a reality on this expedited basis, there can be no assurance that it will occur within the expected timeframe or at all, and a final listing decision is always subject to market conditions and the decision of the board of directors.
Ongoing & Special Distributions
To best position the company for success as a listed company and to maximize trading value upon listing, we are making several financial adjustments as part of the transition. On July 7, the board of directors fixed an annualized distribution rate of $0.715 per share, down from $0.805. The restructuring of the ongoing distribution rate is expected to more closely align the company to its listed peers in certain metrics closely tracked in the publicly listed space, which we anticipate should better position Corporate Capital Trust for post-listing success.
As part of the restructuring, the company currently expects that two additional special distributions, totaling $0.090 per share will be declared and paid to shareholders in the future, subject to the discretion of the board. We expect the first special distribution of $0.045 per share will be paid on or around December 31, 2017 and the second distribution of $0.045 per share will be paid within six months following the listing. Please remember that the payment of any ordinary or special cash distributions from the company remains subject to the discretion of the board and there can be no assurance as to any future distributions. Finally, we expect that, following the listing, Corporate Capital Trust will move from monthly to quarterly distribution payment dates.
Corporate Capital Trust, Inc. is advised by CNL Fund Advisors Company and KKR Credit Advisors (US) LLC |
Share Repurchase Program and Listing-Related Tender Offer
Over the course of the last five years, the company has consistently provided quarterly liquidity via its share repurchase program for shareholders who desired to exit their investment. However, in preparation for the listing, we anticipate that, at the discretion of the board, the company’s existing share repurchase program will end upon completion of the regular quarterly tender offer scheduled to commence in July. We expect that the July tender offer will be the final opportunity for shareholders to exit their investment in the company prior to the listing. To enhance the supply of liquidity upon listing, however, the company expects to conduct a sizeable tender offer to shareholders in the period immediately following the date of listing. You will be notified of the tender offer by us and provided appropriate documentation in advance of that event.
Distribution Reinvestment Plan
Approximately 50 percent of the distributions we make to our shareholders have historically been reinvested into the company through our distribution reinvestment plan. It is expected that certain amendments or modifications to the existing plan will be required as a publicly-listed company. To facilitate these changes, we expect to either terminate or suspend the current plan in the period immediately prior to listing. While we expect to implement a new or amended plan following the listing, we will notify you of any changes if or when the board of directors makes its final determination.
Looking Ahead
I appreciate you taking the time to read this important letter, and while I know these changes are comprehensive, they are all being done to optimally position the company in anticipation of a listing. We continue to be excited for the future of Corporate Capital Trust. With your support, once listed, we expect that the company will be the third-largest publicly-traded business development company in the country, and we expect that the listing will open new opportunities for growth into the future. If you have not yet submitted your proxy, I encourage to you to vote as soon as possible. Voting your shares early will help us reduce expenses related to the proxy solicitation and may facilitate an earlier date of listing.
In the meantime, if you have any questions, please contact your financial advisor or CNL Client Services at 866-650-0650, option 3 and then option 0.
Sincerely,
Chirag J. Bhavsar
Chief Operating Officer and Chief Financial Officer
Cc: Financial Advisors
Additional Information and Where to Find It
In connection with the matters described in this communication, the company has filed relevant materials with the Securities and Exchange Commission (the “SEC”), including a definitive proxy statement on Schedule 14A. The company has mailed the definitive proxy statement and a proxy card to each shareholder entitled to vote at the shareholder meeting relating to such matters. SHAREHOLDERS OF THE COMPANY ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), AND ANY OTHER RELEVANT DOCUMENTS THAT THE COMPANY WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE, BECAUSE THESE MATERIALS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY AND THE MATTERS DESCRIBED IN THIS COMMUNICATION. The definitive proxy statement and other relevant materials (when they become available), and any other documents filed by the company with the SEC, may be obtained free of charge at the SEC’s website (http://www.sec.gov), at the company’s website (http://www.corporatecapitaltrust.com/investor-resources), or by writing to the company at 450 S. Orange Avenue, Orlando, Florida 32801 (telephone number 866-650-0650).
The information under the heading “Share Repurchase Program and Listing-Related Tender Offer” is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities of the company. Each tender offer referred to therein will be made only pursuant to an offer to purchase, letter of transmittal and related materials (the “Tender Materials”). The full details of each tender offer, including complete instructions on how to tender shares of common stock, will be included in the Tender Materials, which the company will distribute to shareholders and file with the SEC upon the commencement of each tender offer. Shareholders are urged to carefully read the Tender Materials when they become available because they will contain important information, including the terms and conditions of each tender offer. The Tender Materials (when they become available), and any other documents filed by the company with the SEC, may be obtained free of charge at the SEC’s website (http://www.sec.gov), at the company’s website (http://www.corporatecapitaltrust.com/investor-resources), or by writing to the company at 450S. Orange Avenue, Orlando, Florida 32801 (telephone number 866-650-0650).
Participants in the Solicitation
The company and its directors and officers may be deemed to be participants in the solicitation of proxies from the company’s shareholders with respect to the matters described in this communication. Information about the company’s directors and officers, as well as the identity of other potential participants, and their respective direct or indirect interests in such matters, by security holdings or otherwise, are set forth in the definitive proxy statement and other materials filed with the SEC.
Forward Looking Statements
The information in this communication may include “forward-looking statements.” These statements are based on the beliefs and assumptions of the company’s management and on the information currently available to management at the time of such statements. Forward-looking statements generally can be identified by the words “believes,” “expects,” “intends,” “plans,” “estimates” or similar expressions that indicate future events. Important factors that could cause actual results to differ materially from the company’s expectations include those disclosed in the company’s filings with the SEC on March 20, 2017. The Company undertakes no obligation to update such statements to reflect subsequent events.
Exhibit 99.2
Corporate Capital Trust News
FA Email
Dear Financial Advisor,
In follow up to Corporate Capital Trust’s definitive proxy filing on May 25, 2017, the company would like to provide you with an update on the preparations for a potential listing. A letter detailing these updates was mailed to shareholders on or around July 10, 2017. Additionally, Corporate Capital Trust just filed an application with the New York Stock Exchange to list its shares of common stock under the symbol “CCT.”
Timing:
While Corporate Capital Trust has communicated an expected listing within the next 12 months from the date of the company’s proxy, Corporate Capital Trust is now planning and taking steps to execute a listing shortly after receipt of shareholder approvals for the proposals outlined in the proxy statement. There can be no assurance that it will occur within the expected timeframe or at all, and a final listing decision is always subject to market conditions and the decision of Corporate Capital Trust’s board of directors.
Ongoing & Special Distributions:
To best position the company for success as a listed company and to maximize trading value upon listing, Corporate Capital Trust is making several financial adjustments as part of the transition. On July 7, 2017, the board of directors fixed an annualized distribution rate of $0.715 per share, down from $0.805. The restructuring of the ongoing distribution rate is expected to more closely align the company with many of its listed business development company peers in certain metrics closely tracked in the publicly listed space, which the company anticipates should better position Corporate Capital Trust for post-listing success, if that should occur.
While subject to change, Corporate Capital Trust expects to issue two additional 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 to be paid within six months following the listing. Please remember that the payment of any ordinary or special cash distributions from the company remains subject to the discretion of the board and there can be no assurance as to any future distributions.
Post-listing, Corporate Capital Trust will move from monthly to quarterly distributions to be consistent with many of its listed business development company peers.
KKR continues to be committed to the success of Corporate Capital Trust and implementing these changes now will help position the company for continued growth and opportunity. According to KKR Credit, “We remain excited about Corporate Capital Trust’s prospects to address the attractive middle-market lending opportunity that exists today. The proposed listing is an important step that will allow the company to fully capitalize on this market opportunity through expanded access to capital markets and new growth opportunities. We believe the combination of the constructive market environment, the proposed listing, and the changes outlined here and in the shareholder letter will provide Corporate Capital Trust the opportunity to generate attractive returns for shareholders going forward.”
Share Repurchase Program and Listing-Related Tender Offer
As Corporate Capital Trust prepares for a listing, it is anticipated that the board will end the share repurchase program following the regular quarterly tender offer scheduled to begin in July. However, subject to board approval, Corporate Capital Trust anticipates it will conduct a sizeable tender offer to existing shareholders following the listing.
Distribution Reinvestment Plan
It is expected that certain amendments or modifications to the existing plan will be required as a publicly-listed company. To that end, Corporate Capital Trust expects to either terminate or suspend the current plan in the period prior to listing. A new or amended plan is expected to be implemented following a listing.
Looking Ahead
We continue to be excited for the future of Corporate Capital Trust. Upon a potential listing, we expect the company to be the third-largest traded business development company in the country. Corporate Capital Trust believes that the listing will open new opportunities for growth in the future.
Please encourage your clients to vote their shares as they see fit, as soon as possible, to help reduce expenses related to the proxy solicitation.
If you have any questions, please contact CNL Client Services at 866-650-0650, option 3 and then option 0.
CCT-0717-00251-001-BD
FOR BROKER-DEALER and RIA USE ONLY.
Additional Information and Where to Find It
In connection with the matters described in this communication, the company has filed relevant materials with the Securities and Exchange Commission (the “SEC”), including a definitive proxy statement on Schedule 14A. The company has mailed the definitive proxy statement and a proxy card to each shareholder entitled to vote at the shareholder meeting relating to such matters. SHAREHOLDERS OF THE COMPANY ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), AND ANY OTHER RELEVANT DOCUMENTS THAT THE COMPANY WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE, BECAUSE THESE MATERIALS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY AND THE MATTERS DESCRIBED IN THIS COMMUNICATION. The definitive proxy statement and other relevant materials (when they become available), and any other documents filed by the company with the SEC, may be obtained free of charge at the SEC’s website (http://www.sec.gov), at the company’s website (http://www.corporatecapitaltrust.com/investor-resources), or by writing to the company at 450 S. Orange Avenue, Orlando, Florida 32801 (telephone number 866-650-0650).
The information under the heading “Share Repurchase Program and Listing-Related Tender Offer” is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities of the company. Each tender offer referred to therein will be made only pursuant to an offer to purchase, letter of transmittal and related materials (the “Tender Materials”). The full details of each tender offer, including complete instructions on how to tender shares of common stock, will be included in the Tender Materials, which the company will distribute to shareholders and file with the SEC upon the commencement of each tender offer. Shareholders are urged to carefully read the Tender Materials when they become available because they will contain important information, including the terms and conditions of each tender offer. The Tender Materials (when they become available), and any other documents filed by the company with the SEC, may be obtained free of charge at the SEC’s website (http://www.sec.gov), at the company’s website (http://www.corporatecapitaltrust.com/investor-resources), or by writing to the company at 450 S. Orange Avenue, Orlando, Florida 32801 (telephone number 866-650-0650).
Participants in the Solicitation
The company and its directors and officers may be deemed to be participants in the solicitation of proxies from the company’s shareholders with respect to the matters described in this communication. Information about the company’s directors and officers, as well as the identity of other potential participants, and their respective direct or indirect interests in such matters, by security holdings or otherwise, are set forth in the definitive proxy statement and other materials filed with the SEC.
Forward Looking Statements
The information in this communication may include “forward-looking statements.” These statements are based on the beliefs and assumptions of the company’s management and on the information currently available to management at the time of such statements. Forward-looking statements generally can be identified by the words “believes,” “expects,” “intends,” “plans,” “estimates” or similar expressions that indicate future events. Important factors that could cause actual results to differ materially from the company’s expectations include those disclosed in the company’s filings with the SEC on March 20, 2017. The company undertakes no obligation to update such statements to reflect subsequent events.
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