Your Core BDC®
Corporate Capital Trust II has suspended its continuous public offering as of Jan. 10, 2018.
Corporate Capital Trust II is a non-traded business development company (BDC) that invests primarily in the debt of privately owned American companies.
Brought to you by private investment management firm CNL and global alternative asset manager KKR, Corporate Capital Trust II 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 may potentially lessen the impact of rising interest rates.
Corporate Capital Trust II intends to meet its objective by:
Given that this investment is speculative and has substantial costs, an investor must meet suitability standards prior to investing.
|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||Primarily within the United States|
|Investment Objective||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)3||Once implemented, quarterly share repurchase price will be based on the investment's NAV.|
|Exit Strategy||While there can be no assurances regarding the timing of a liquidity event, 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. Managing dealer of Corporate Capital Trust II is CNL Securities, member FINRA/SIPC.
Corporate Capital Trust II is not available to residents of Massachusetts.
There is no assurance that these 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. Corporate Capital Trust II is obligated to repay the advisors over several years, reducing future distributions and potentially diluting value for future shareholders.
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 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.
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.
This material is provided by CNL and its affiliates and is intended for general use with the public. CNL and its affiliates cannot provide investment advice for any individual or any individual situation, and are not acting in a fiduciary capacity to any investor. Do not look to this material for any investment advice. CNL and its affiliates have financial interests that are served by the sale of Corporate Capital Trust II's shares.
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.
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 conflicts of interest with the advisors, payment of substantial fees to affiliates and limited liquidity. 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 limited operating history, including the risk that it will not achieve its investment objective and that the value of its common stock could decline substantially. Investors will not have the opportunity to evaluate historical data or assess any investments prior to purchasing shares of common stock.
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. Corporate Capital Trust II is obligated to repay the advisors over several years, reducing future distributions which may dilute value for future shareholders.
The investment strategy of Corporate Capital Trust II is focused primarily on investing in privately held companies, which presents certain challenges, including extending loans to those with potentially low credit quality and a lack of publicly available information.
An investment in Corporate Capital Trust II is illiquid and should be purchased as a long-term investment. Investors may not be able to sell until a liquidity event.
The board of trustees for Corporate Capital Trust II may, but is not required to, implement a quarterly share repurchase program, which is expected to be based on net asset value.View the Prospectus
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