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): June 20, 2018
CNL STRATEGIC CAPITAL, LLC
(Exact name of registrant as specified in its charter)
DELAWARE | 333-222986 | 32-0503849 |
(State
or Other Jurisdiction of |
(Commission File Number) |
(IRS Employer Identification Number) |
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: (407) 650-1000
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 check mark 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.
Determination of Net Asset Value for the month ended May 31, 2018
On June 20, 2018, the board of directors (the “Board”) of CNL Strategic Capital, LLC (the “Company”) determined the Company’s net asset value per share for each class with outstanding shares in a manner consistent with the Company’s valuation policy, as described under "Determination of Net Asset Value" in the Prospectus, as amended and supplemented. As of May 31, 2018, the Company did not have any outstanding Class D shares. Class FA shares were offered in a separate private offering and are not being offered in the Company’s current public offering (the “Offering”). The following table provides the Company’s aggregate net asset value and net asset value per share for its Class FA, Class A, Class T, and Class I shares as of May 31, 2018:
Month Ended May 31, 2018 | Class FA | Class A | Class T | Class I | Total | |||||||||||||||||
Net Asset Value | $ | 82,513,327 | $ | 7,497 | $ | 42,892 | $ | 702,731 | $ | 83,266,448 | ||||||||||||
Number of Outstanding Shares | 3,266,260 | 299 | 1,704 | 27,857 | 3,296,120 | |||||||||||||||||
Net Asset Value, Per Share | $ | 25.26 | $ | 25.08 | $ | 25.17 | $ | 25.23 |
We have also posted this information on our website at www.cnlstrategiccapital.com. A subscriber may also obtain this information by calling us by telephone at (866) 650-0650.
Public Offering Price Adjustment
On June 20, 2018, the Board also approved the new per share public offering price for each share class in the Offering. As of May 31, 2018, the Company had not sold any Class D shares. The new per share public offering prices for the Company’s Class D shares are based on the Company’s aggregate net asset value per share as of May 31, 2018. The new public offering prices will be effective as of June 26, 2018, which will be our next closing. For shareholders participating in the Company’s distribution reinvestment plan, the reinvestment price for the Company’s Class D shares will be at the public offering price. The following table provides the new public offering prices and applicable upfront selling commissions and dealer manager fees for each share class available in the Offering:
Class A | Class T | Class D | Class I | |||||||||||||||
Public Offering Price, Per Share | $ | 27.41 | $ | 26.43 | $ | 25.26 | $ | 25.23 | ||||||||||
Selling Commissions, Per Share | $ | 1.64 | $ | 0.80 | ― | ― | ||||||||||||
Dealer Manager Fees, Per Share | $ | 0.69 | $ | 0.46 | ― | ― |
We have also posted this information on our website at www.cnlstrategiccapital.com. A subscriber may also obtain this information by calling us by telephone at (866) 650-0650.
Subscription Procedures
Beginning in July 2018, we will begin closings on subscriptions received and accepted by us on a monthly basis. The monthly closing date on which we will accept subscriptions is expected to be the last business day of each month.
Declaration of Distributions
On June 20, 2018, the Board declared cash distributions on the outstanding shares of all classes of our common shares based on weekly record dates for the time period beginning on July 3, 2018 through and including September 28, 2018, as set forth below:
Distribution Record Date | Distribution | Declared Distribution Per Share for Each Share Class | ||||||||||||||||||||
Class FA | Class A | Class T | Class D | Class I | ||||||||||||||||||
July 3, 2018 | August 10, 2018 | $ | 0.024038 | $ | 0.024038 | $ | 0.019231 | $ | 0.021635 | $ | 0.024038 | |||||||||||
July 10, 2018 | August 10, 2018 | $ | 0.024038 | $ | 0.024038 | $ | 0.019231 | $ | 0.021635 | $ | 0.024038 | |||||||||||
July 17, 2018 | August 10, 2018 | $ | 0.024038 | $ | 0.024038 | $ | 0.019231 | $ | 0.021635 | $ | 0.024038 | |||||||||||
July 24, 2018 | August 10, 2018 | $ | 0.024038 | $ | 0.024038 | $ | 0.019231 | $ | 0.021635 | $ | 0.024038 | |||||||||||
July 31, 2018 | August 10, 2018 | $ | 0.024038 | $ | 0.024038 | $ | 0.019231 | $ | 0.021635 | $ | 0.024038 |
August 7, 2018 | September 10, 2018 | $ | 0.024038 | $ | 0.024038 | $ | 0.019231 | $ | 0.021635 | $ | 0.024038 | |||||||||||
August 14, 2018 | September 10, 2018 | $ | 0.024038 | $ | 0.024038 | $ | 0.019231 | $ | 0.021635 | $ | 0.024038 | |||||||||||
August 21, 2018 | September 10, 2018 | $ | 0.024038 | $ | 0.024038 | $ | 0.019231 | $ | 0.021635 | $ | 0.024038 | |||||||||||
August 31, 2018 | September 10, 2018 | $ | 0.024038 | $ | 0.024038 | $ | 0.019231 | $ | 0.021635 | $ | 0.024038 | |||||||||||
September 4, 2018 | October 10, 2018 | $ | 0.024038 | $ | 0.024038 | $ | 0.019231 | $ | 0.021635 | $ | 0.024038 | |||||||||||
September 11, 2018 | October 10, 2018 | $ | 0.024038 | $ | 0.024038 | $ | 0.019231 | $ | 0.021635 | $ | 0.024038 | |||||||||||
September 18, 2018 | October 10, 2018 | $ | 0.024038 | $ | 0.024038 | $ | 0.019231 | $ | 0.021635 | $ | 0.024038 | |||||||||||
September 28, 2018 | October 10, 2018 | $ | 0.024038 | $ | 0.024038 | $ | 0.019231 | $ | 0.021635 | $ | 0.024038 |
Cautionary Note Regarding Forward-Looking Statements
Statements in this Current Report on Form 8-K, including intentions, beliefs, expectations or projections relating to the items described herein, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. Any forward-looking statement made by us in this Current Report is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. Important risks, uncertainties and factors that could cause actual results to differ materially from those in the forward-looking statements include the risks associated with the Company’s ability to pay distributions and the sources of such distribution payments, the Company’s ability to locate and make suitable investments, and other risks described in the “Risk Factors” section of the Company’s Registration Statement on Form S-1 and the other documents filed by the Company with the Securities and Exchange Commission.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
Date: June 20, 2018 | CNL Strategic Capital, LLC a Delaware limited liability company | ||
By: | /s/ Chirag J. Bhavsar | ||
Chirag J. Bhavsar Chief Executive Officer |