Your Core BDC®
Through the combined efforts of CNL and KKR, Corporate Capital Trust II presents a compelling opportunity for investors. This non-traded business development company (BDC) intends to provide shareholders with monthly income and, to a lesser extent, capital appreciation.1 Alternative investments, including non-traded BDCs, may provide diversification in portfolios comprised of traditional assets and potentially mitigate the impact of rising interest rates.
Corporate Capital Trust II intends to meet its objective by:
Please note that an investor must review the fees and expenses in the prospectus as there are substantial costs associated with this offering.
|Corporate Capital Trust II Information|
|Maximum Offering Size||275 million shares|
|Share Pricing Frequency2||Weekly|
|Published Net Asset Value (NAV)||Monthly|
|Investment Focus||Primarily in the debt of private American companies|
|Geographic Focus||United States|
|Investment Objective3||Current income and, to a lesser extent, long-term capital appreciation|
|Distribution Payment Schedule1||Monthly|
|Distribution Reinvestment Price||Public offering price net of upfront selling commissions and dealer manager fees|
|Limited Share Repurchase Program (SRP)4||Quarterly share repurchase price is expected to be based on the investment's NAV.|
|Exit Strategy||The board of trustees must consider liquidity options on or before five years after the offering's completion.|
|Financial Suitability Standards||Minimum standards are $250,000 net worth, or $70,000 net worth and $70,000 annual gross income (excluding home, furnishings or personal automobiles). Some states or selling firms may have additional standards. These include, but are not limited to, AL, CA, IA, ID, KS, KY, MA, ME, MI, ND, NE, NJ, NM, OH, OK, TN, TX and VT.|
Corporate Capital Trust II is advised by CNL Fund Advisors II, LLC and subadvised by KKR Credit Advisors (US) LLC, affiliates of CNL Financial Group and KKR & Co. L.P., respectively.
There is no assurance the stated objectives will be met. Read the prospectus, including the Risk Factors section, for full details.
1 Distributions are not guaranteed in frequency or amount. Since inception, distributions have been supported by the advisors in the form of fee waivers and operating expense support waivers, and are not estimated to be a return of capital or supported by borrowed funds. Distributions exceed earnings and are not based on the investment performance; there can be no assurance that distributions will be sustained at current levels or at all. Near-term distributions will be paid from fee waivers or deferrals, expense support waivers, offering proceeds, borrowings and cash from operations. Corporate Capital Trust II is obligated to repay the advisors over several years, reducing future distributions and potentially diluting value for shareholders entering the fund at a later date. The offering price will be adjusted to ensure shares are not sold at a value that is below the NAV of Corporate Capital Trust II.
2 The offering price will be adjusted to ensure shares are not sold at a value that is below the NAV of Corporate Capital Trust II.
3 There is no assurance that this objective will be met.
4 The board of trustees for Corporate Capital Trust II may, but is not required to, implement an SRP, which is expected to be limited to 2.5 percent of the weighted average number of shares outstanding in any quarter. The SRP, when implemented, may be suspended, modified or terminated by the board of trustees at any time. Any repurchase of shares pursuant to the SRP will be at a price per share that is less than the current public offering price in effect on the date that Corporate Capital Trust II initiates the repurchase offer.
This is not an offer. Securities can be offered by the prospectus only. Since investing in Corporate Capital Trust II is not suitable for all investors, the prospectus should be read carefully by an investor before investing. Investors are advised to consider the investment objectives, risks, charges and expenses before investing. The prospectus, which is available at sec.gov and corporatecapitaltrustii.com, and may be obtained by calling 866-650-0650, contains this and other information about Corporate Capital Trust II.
Corporate Capital Trust II is not available to residents of Massachusetts. Selling firms are reminded that offering-specific communications must be accompanied or preceded by a prospectus. Neither the U.S. Securities and Exchange Commission, the attorney general of the state of New York nor any other regulatory agency has passed on or endorsed the merits of this offering. Any representation to the contrary is a criminal offense.
Investing in Corporate Capital Trust II may be considered speculative and involves a high degree of risk, including the risk of a substantial loss of investment. Other risks include no operating history, reliance on the advisors of the company, conflicts of interest, payment of substantial fees to the advisors of the company and its affiliates, limited liquidity and liquidation at less than the original amount invested. Investing in Corporate Capital Trust II is not a short-term investment and requires investors to meet the minimum suitability standards.
This is a new company and is subject to all of the risks and uncertainties associated with any business with approximately one year of operating history, including the risk that it will not achieve its investment objective and that the value of its common stock could decline substantially. In addition, Corporate Capital Trust II has not identified specific investments that it will make with the proceeds of this offering. As a result, this may be deemed to be a blind pool offering, and investors will not have the opportunity to evaluate historical data or assess any investments prior to purchasing shares of common stock.
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