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Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2017

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 814-00827

 

 

CORPORATE CAPITAL TRUST, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Maryland   27-2857503

(State or other jurisdiction of

incorporation or organization)

 

(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

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☐    No    ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer      Accelerated filer  
Non-accelerated filer   ☒  Do not check if smaller reporting company    Smaller reporting company  
     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.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

The number of shares of common stock of the registrant outstanding as of August 9, 2017 was 309,237,663.

 

 

 


Table of Contents

CORPORATE CAPITAL TRUST, INC.

INDEX

 

             PAGE  

PART I. FINANCIAL INFORMATION

  
  Item 1.   Financial Statements:   
   

Condensed Consolidated Statements of Assets and Liabilities as of June 30, 2017 (unaudited) and December 31, 2016

     2  
   

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016 (unaudited)

     3  
   

Condensed Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2017 and 2016 (unaudited)

     5  
    Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016 (unaudited)      6  
    Condensed Consolidated Schedules of Investments as of June 30, 2017 (unaudited) and December 31, 2016      7  
    Notes to Condensed Consolidated Financial Statements (unaudited)      43  
  Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations      83  
  Item 3.   Quantitative and Qualitative Disclosures about Market Risk      109  
  Item 4.   Controls and Procedures      111  

PART II. OTHER INFORMATION

  
  Item 1.   Legal Proceedings      112  
  Item 1A.   Risk Factors      112  
  Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds      112  
  Item 3.   Defaults Upon Senior Securities      112  
  Item 4.   Mine Safety Disclosures      112  
  Item 5.   Other Information      112  
  Item 6.   Exhibits      112  
Signatures      113  
Exhibit Index        114  


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share amounts)

 

     June 30, 2017     December 31, 2016  
     (unaudited)        

Assets

    

Investments at fair value:

    

Non-controlled, non-affiliated investments (amortized cost of $3,724,101 and $3,797,345, respectively) - including $- and $345,774, respectively, of investments pledged to creditors (Note 10)

   $ 3,648,639     $ 3,622,442  

Non-controlled, affiliated investments (amortized cost of $269,631 and $187,703,respectively)

     224,075       142,855  

Controlled, affiliated investments (amortized cost of $327,438 and $341,875, respectively)

     268,364       259,996  
  

 

 

   

 

 

 

Total investments, at fair value (amortized cost of $4,321,170 and $4,326,923, respectively)

     4,141,078       4,025,293  

Cash

     29,880       127,031  

Cash denominated in foreign currency (cost of $94,977 and $5,314, respectively)

     95,295       5,229  

Restricted cash

     5,281       14,353  

Collateral on deposit with custodian

     —         95,000  

Dividends and interest receivable

     46,383       53,484  

Receivable for investments sold

     25,564       49,324  

Principal receivable

     10,039       2,942  

Unrealized appreciation on derivative instruments

     9,066       42,511  

Receivable from advisors

     5,629       2,040  

Deferred offering expense

     72       402  

Deferred tax asset

     7,512       —    

Prepaid and other deferred expenses

     11,822       13,087  
  

 

 

   

 

 

 

Total assets

     4,387,621       4,430,696  
  

 

 

   

 

 

 

Liabilities

 

Revolving credit facilities

     959,000       1,219,000  

Term loan payable, net

     383,971       385,203  

Unsecured notes payable, net

     137,208       —    

Repurchase agreement payable

     —         23,454  

Payable for investments purchased

     120,218       22,205  

Unrealized depreciation on derivative instruments

     18,677       251  

Accrued performance-based incentive fees

     4,748       4,905  

Accrued investment advisory fees

     6,883       7,332  

Deferred tax liability

     388       1,991  

Other accrued expenses and liabilities

     6,630       7,023  
  

 

 

   

 

 

 

Total liabilities

     1,637,723       1,671,364  

Commitments and contingencies (Note 11)

 

  

 

 

   

 

 

 

Net Assets

   $ 2,749,898     $ 2,759,332  
  

 

 

   

 

 

 

Components of Net Assets

 

Common stock, $0.001 par value per share, 1,000,000,000 shares authorized, 308,243,213 and 309,041,547 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively

   $ 308     $ 309  

Paid-in capital in excess of par value

     3,005,274       3,012,062  

Undistributed net investment income

     20,696       39,566  

Accumulated net realized losses

     (93,737     (32,331

Accumulated net unrealized depreciation on investments, derivative instruments and foreign currency translation (net of provision for taxes of $7,124 and $1,991,respectively)

     (182,643     (260,274
  

 

 

   

 

 

 

Net assets

   $ 2,749,898     $ 2,759,332  
  

 

 

   

 

 

 

Net asset value per share

   $ 8.92     $ 8.93  
  

 

 

   

 

 

 

See notes to condensed consolidated financial statements.

 

2


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (unaudited)

(in thousands, except share and per share amounts)

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2017     2016     2017     2016  

Investment income

        

Interest income:

        

Non-controlled, non-affiliated investments (net of tax withholding, $1,528, $308, $1,801 and $647, respectively)

   $ 75,894     $ 85,201     $ 159,629     $ 162,795  

Non-controlled, affiliated investments

     3,122       —         3,122       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total interest income

     79,016       85,201       162,751       162,795  
  

 

 

   

 

 

   

 

 

   

 

 

 

Payment-in-kind interest income:

        

Non-controlled, non-affiliated investments

     1,109       2,090       2,136       6,552  

Non-controlled, affiliated investments

     —         3,740       —         7,642  

Controlled, affiliated investments

     2,940       —         5,403       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total payment-in-kind interest income

     4,049       5,830       7,539       14,194  
  

 

 

   

 

 

   

 

 

   

 

 

 

Fee income:

 

Non-controlled, non-affiliated investments

     5,645       2,578       8,250       3,243  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total fee income

     5,645       2,578       8,250       3,243  
  

 

 

   

 

 

   

 

 

   

 

 

 

Dividend and other income:

        

Non-controlled, non-affiliated investments

     3,893       2,183       4,189       2,318  

Non-controlled, affiliated investments

     —         590       —         1,159  

Controlled, affiliated investments

     7,871       2,065       10,593       3,589  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total dividend and other income

     11,764       4,838       14,782       7,066  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

     100,474       98,447       193,322       187,298  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

        

Investment advisory fees

     20,914       19,992       41,685       39,668  

Interest expense

     15,207       11,958       29,355       23,425  

Performance-based incentive fees

     4,748       10,752       5,675       13,402  

Professional services

     1,959       749       3,005       1,383  

Investment advisor expenses

     1,713       190       2,609       409  

Administrative services

     770       876       1,610       1,722  

Offering expenses

     122       673       327       1,485  

Custodian and accounting fees

     399       363       836       777  

Director fees and expenses

     168       129       301       241  

Other

     1,362       528       2,141       1,214  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     47,362       46,210       87,544       83,726  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income before taxes

     53,112       52,237       105,778       103,572  

Income tax expense, including excise tax

     198       —         321       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     52,914       52,237       105,457       103,572  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gains (losses)

        

Net realized gains (losses) on:

        

Non-controlled, non-affiliated investments

     (85,586     (10,281     (70,108     (22,430

Controlled, affiliated investments

     (7,567     —         (7,413     —    

Derivative instruments

     11,362       2,118       14,233       11,387  

Foreign currency transactions

     2,397       (995     1,882       2,195  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized losses

     (79,394     (9,158     (61,406     (8,848
  

 

 

   

 

 

   

 

 

   

 

 

 

 

See notes to condensed consolidated financial statements.

 

3


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (unaudited), (continued)

(in thousands, except share and per share amounts)

 

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2017     2016     2017     2016  

Net change in unrealized appreciation (depreciation) on:

        

Non-controlled, non-affiliated investments

     88,101       57,750       99,441       19,303  

Non-controlled, affiliated investments

     (2,879     942       (708     (13,218

Controlled, affiliated investments

     17,117       (6,502     22,805       (5,004

Derivative instruments

     (47,607     22,994       (51,871     (9,407

Foreign currency translation

     (393     674       (725     (2,746

Provision for taxes

     9,103       —         8,689       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

     63,442       75,858       77,631       (11,072
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gains (losses)

     (15,952     66,700       16,225       (19,920
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in net assets resulting from operations

   $ 36,962     $ 118,937     $ 121,682     $ 83,652  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income per share

   $ 0.17     $ 0.17     $ 0.34     $ 0.34  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted and basic earnings per share

   $ 0.12     $ 0.39     $ 0.39     $ 0.28  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of shares of common stock outstanding (basic and diluted)

     308,394,388       304,766,963       308,869,051       301,423,037  
  

 

 

   

 

 

   

 

 

   

 

 

 

Distributions declared per share

   $ 0.20     $ 0.20     $ 0.40     $ 0.40  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

See notes to condensed consolidated financial statements.

 

4


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Changes in Net Assets (unaudited)

(in thousands, except share amounts)

 

     Six Months Ended June 30,  
     2017     2016  

Operations

    

Net investment income

   $ 105,457     $ 103,572  

Net realized losses on investments, derivative instruments and foreign currency transactions

     (61,406     (8,848

Net change in unrealized appreciation (depreciation) on investments, derivative instruments and foreign currency translation

     77,631       (11,072
  

 

 

   

 

 

 

Net increase in net assets resulting from operations

     121,682       83,652  
  

 

 

   

 

 

 

Distributions to shareholders from

    

Net investment income

     (105,457     (103,572

Distributions in excess of net investment income (Note 8)

     (18,870     (17,675
  

 

 

   

 

 

 

Net decrease in net assets resulting from shareholders’ distributions

     (124,327     (121,247
  

 

 

   

 

 

 

Capital share transactions

    

Issuance of shares of common stock

     —         111,929  

Reinvestment of shareholders’ distributions

     61,325       61,884  

Repurchase of shares of common stock

     (68,114     (30,783
  

 

 

   

 

 

 

Net increase/(decrease) in net assets resulting from capital share transactions

     (6,789     143,030  
  

 

 

   

 

 

 

Total increase (decrease) in net assets

     (9,434     105,435  

Net assets at beginning of period

     2,759,332       2,594,022  
  

 

 

   

 

 

 

Net assets at end of period

   $ 2,749,898     $ 2,699,457  
  

 

 

   

 

 

 

Capital share activity

    

Shares issued from subscriptions

     —         12,588,477  

Shares issued from reinvestment of distributions

     6,761,319       6,969,469  

Shares repurchased

     (7,559,653     (3,509,579
  

 

 

   

 

 

 

Net increase (decrease) in shares outstanding

     (798,334     16,048,367  
  

 

 

   

 

 

 

Undistributed net investment income at end of period

   $ 20,696     $ 49,573  
  

 

 

   

 

 

 

 

See notes to condensed consolidated financial statements.

 

5


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (unaudited)

(in thousands)

 

     Six Months Ended June 30,  
     2017     2016  

Operating Activities:

    

Net increase in net assets resulting from operations

   $ 121,682     $ 83,652  

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:

    

Purchases of investments

     (819,207     (721,083

Increase in payable for investments purchased

     97,207       43,477  

Payment-in-kind interest capitalized

     (2,146     (15,229

Proceeds from sales of investments

     248,741       145,823  

Proceeds from principal payments

     514,165       289,436  

Net realized loss on investments

     77,521       22,430  

Net change in unrealized appreciation on investments

     (121,538     (1,081

Net change in unrealized depreciation on derivative instruments

     51,871       9,407  

Net change in unrealized depreciation on foreign currency translation

     725       2,746  

Amortization of premium/discount, net

     (11,882     (4,071

Amortization of deferred financing costs

     2,038       1,948  

Accretion of discount on term loan payable

     200       196  

Increase in short-term investments, net

     (1,439     (97

Decrease in collateral on deposit with custodian

     95,000       32,640  

Decrease (increase) in dividends and interest receivable

     7,101       (2,503

Decrease (increase) in receivable for investments sold

     24,217       (50,553

Increase in principal receivable

     (7,097     (845

Increase in receivable from advisors

     (3,589     (2,264

Decrease in deferred tax asset

     (7,011     —    

Decrease in other assets

     230       478  

(Decrease) increase in accrued investment advisory fees

     (449     139  

(Decrease) increase in accrued performance-based incentive fees

     (157     10,003  

Increase in deferred tax liability

     (1,679     —    

Decrease in other accrued expenses and liabilities

     (393     (2,788
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     264,111       (158,139
  

 

 

   

 

 

 

Financing Activities:

    

Proceeds from issuance of shares of common stock

     —         111,929  

Payments on repurchases of shares of common stock

     (68,114     (30,783

Distributions paid

     (63,002     (59,363

Repayments under term loan payable

     (2,000     (2,000

Borrowings under revolving credit facilities

     298,500       380,000  

Repayments of revolving credit facilities

     (558,500     (169,587

Borrowings under unsecured notes payable

     140,000       —    

Repayments of repurchase agreement

     (24,726     —    

Deferred financing costs paid

     (2,829     (7,342
  

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (280,671     222,854  
  

 

 

   

 

 

 

Effect of exchange rate changes on cash

     403       (269
  

 

 

   

 

 

 

Net (decrease) increase in cash

     (16,157     64,446  

Cash, cash denominated in foreign currency and restricted cash, beginning of period

     146,613       69,204  
  

 

 

   

 

 

 

Cash, cash denominated in foreign currency and restricted cash, end of period

   $ 130,456     $ 133,650  
  

 

 

   

 

 

 

Supplemental disclosure of cash flow information and non-cash financing activities:

    

Cash paid for interest

   $ 26,293     $ 20,935  
  

 

 

   

 

 

 

Taxes paid, including excise tax

   $ 3,820     $ 2,791  
  

 

 

   

 

 

 

Distributions reinvested

   $ 61,325     $ 61,884  
  

 

 

   

 

 

 

Receivable from repurchase agreement

   $ —       $ 24,726  
  

 

 

   

 

 

 

Deferred financing costs accrued in other expenses and liabilities

   $ —       $ 26  
  

 

 

   

 

 

 

 

See notes to condensed consolidated financial statements.

 

6


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited)

As of June 30, 2017

(in thousands, except share amounts)

 

Company (a)(b)   Footnotes   Industry   Interest
Rate
    Base Rate
Floor
    Maturity
Date (c)
    No. Shares/
Principal
Amount (d)
    Cost (e)     Fair Value  

First Lien Senior Secured Loans—59.8%

                                                       

A10 Capital, LLC

  (f)(g)(2)  

Real Estate

    L + 700       1.00     10/15/2021     $ 32,688     $ 32,399     $ 33,015  

Abaco Systems, Inc.

  (f)(h)(3)  

Capital Goods

    L + 600       1.00     12/7/2021       65,346       63,028       65,146  

ABB CONCISE Optical Group, LLC

  (3)  

Retailing

    L + 500       1.00     6/15/2023       6,829       6,829       6,842  

ABILITY Network, Inc.

  (3)  

Health Care Equipment & Services

    L + 500       1.00     5/14/2021       12,018       11,977       12,055  

Accuride Corp.

  (3)  

Capital Goods

    L + 700       1.00     11/17/2023       15,038       14,708       15,188  

Acosta Holdco, Inc.

  (2)  

Commercial & Professional Services

    L + 325       1.00     9/26/2021       8,000       7,528       7,208  

Agro Merchants NAI Holdings, LLC

  (f)(h)(3)  

Transportation

    L + 700       1.00     10/1/2020       73,076       72,490       71,414  

Alion Science & Technology Corp.

  (2)  

Capital Goods

    L + 450       1.00     8/19/2021       2,825       2,823       2,823  

AltEn, LLC

  (f)(i)(j)(k)(4)  

Energy

   

L + 900 PIK

(L + 900 Max PIK

 

    1.00     9/12/2018       38,456       29,836       5,437  

AM General, LLC

  (f)(h)(2)  

Automobiles & Components

    L + 725       1.00     12/28/2021       92,471       91,199       94,469  

American Freight, Inc.

  (f)(3)  

Retailing

    L + 625       1.00     10/31/2020       31,873       31,774       31,873  

Amtek Global Technology Pte. Ltd. (SGP)

  (f)(g)(l)(5)(EUR)  

Automobiles & Components

    5.00             11/10/2019     82,055       91,286       93,719  

Applied Systems, Inc.

  (3)  

Software & Services

    L + 325       1.00     1/25/2021     $ 638       642       642  

Aspen Dental Management, Inc.

  (3)  

Health Care Equipment & Services

    L + 375       1.00     4/29/2022       2,515       2,539       2,539  

Bay Club, Co.

  (2)  

Consumer Services

    L + 650       1.00     8/31/2022       5,552       5,538       5,608  

 

See notes to condensed consolidated financial statements.

 

7


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

Company (a)(b)    Footnotes   Industry    Interest
Rate
     Base Rate
Floor
    Maturity
Date (c)
     No. Shares/
Principal
Amount (d)
     Cost (e)      Fair Value  

BeyondTrust Software, Inc.

   (f)(3)  

Software & Services

     L + 700      1.00     9/25/2019      $ 11,886      $ 11,814      $ 11,684  

Brand Energy

   (g)(3)  

Capital Goods

     L + 425        1.00     6/14/2024        650        649        650  

Casual Dining Group, Ltd. (GBR)

   (f)(g)(l)(3)(GBP)  

Consumer Services

     L + 825              12/11/2020      £ 40,546        60,478        49,216  

Charlotte Russe, Inc.

   (3)  

Retailing

     L + 550      1.25     5/22/2019      $ 18,136        18,053        8,992  
     (3)          L + 550        1.25     5/22/2019        4,440        4,427        2,201  

Commercial Barge Line, Co.

   (2)  

Transportation

     L + 875        1.00     11/12/2020        11,741        10,076        10,234  

CSM Bakery Products

   (3)  

Food, Beverage & Tobacco

     L + 400        1.00     7/3/2020        4,874        4,627        4,645  

CTI Foods Holding Co., LLC

   (2)  

Food, Beverage & Tobacco

     L + 350        1.00     6/29/2020        3,762        3,522        3,522  

Dentix (SPN)

   (f)(g)(l)(5)(EUR)  

Health Care Equipment & Services

     E + 825                12/14/2021      20,527        21,225        25,818  

Distribution International, Inc.

   (3)  

Retailing

     L + 500        1.00     12/15/2021      $ 20,703        16,728        16,950  

DJO Finance, LLC

   (2)  

Health Care Equipment & Services

     L + 325        1.00     6/8/2020        8,605        8,505        8,531  

EagleView Technology Corp.

   (3)  

Software & Services

     L + 425        1.00     7/15/2022        6,878        6,826        6,907  

Emerald Expositions Holding, Inc.

   (3)  

Media

     L + 300                5/17/2024        3,309        3,324        3,324  

Emerald Performance Materials, LLC

   (3)  

Materials

     L + 350        1.00     7/30/2021        553        556        556  

FleetPride Corp.

   (3)  

Capital Goods

     L + 400      1.25     11/19/2019        863        780        848  

Genesys Telecommunications Laboratories, Inc.

   (3)  

Technology Hardware & Equipment

     L + 400        1.00     12/1/2023        840        842        842  

Greystone & Co., Inc.

   (f)(h)(6)  

Diversified Financials

     L + 800        1.00     3/26/2021        37,781        37,411        37,841  

 

See notes to condensed consolidated financial statements.

 

8


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

Company (a)(b)    Footnotes   Industry    Interest
Rate
     Base Rate
Floor
    Maturity
Date (c)
     No. Shares/
Principal
Amount (d)
     Cost (e)      Fair Value  

Grocery Outlet, Inc.

   (3)  

Food & Staples Retailing

     L + 350        1.00     10/21/2021      $ 4,818      $ 4,800      $ 4,762  

Gypsum Management & Supply, Inc.

   (3)  

Capital Goods

     L + 300        1.00     4/1/2023        8,275        8,285        8,285  

Heartland Dental Care, Inc.

   (2)  

Pharmaceuticals, Biotechnology & Life Sciences

     L + 450        1.00     12/21/2018        1,023        1,022        1,027  

Hillman Group, Inc.

   (3)  

Consumer Durables & Apparel

     L + 350      1.00     6/30/2021        9,707        9,759        9,758  

HUB International, Ltd.

   (3)  

Insurance

     L + 325        1.00     10/2/2020        6,063        6,074        6,074  

Hunt Mortgage

   (f)(h)(2)  

Diversified Financials

     L + 750        1.00     2/14/2023        43,824        43,197        43,972  

inVentiv Health, Inc.

   (3)  

Health Care Equipment & Services

     L + 375        1.00     11/9/2023        5,461        5,474        5,479  

JHT Holdings, Inc.

   (f)(h)(3)  

Capital Goods

     L + 850      1.00     5/4/2022        32,478        31,929        33,489  

Jo-Ann Stores, Inc.

   (3)  

Retailing

     L + 500        1.00     10/20/2023        16,452        16,287        16,407  

KeyPoint Government Solutions, Inc.

   (f)(h)(3)  

Capital Goods

     L + 600        1.00     4/18/2024        36,006        35,654        35,871  

Koosharem, LLC

   (h)(3)  

Commercial & Professional Services

     L + 650        1.00     5/15/2020        20,894        20,652        19,614  

Marshall Retail Group, LLC

   (f)(3)  

Retailing

     L + 600        1.00     8/25/2020        16,262        16,163        15,369  

National Debt Relief LLC

   (f)(h)(3)  

Diversified Financials

     L + 675        1.00     4/15/2023        11,290        11,233        11,205  

Natural American Foods Inc

   (f)(h)(3)  

Food & Staples Retailing

     L + 675        1.00     5/30/2023        27,089        26,954        26,953  

NBG Home

   (7)  

Consumer Durables & Apparel

     L + 500        1.00     4/12/2024        26,000        25,480        25,870  

NEP Group, Inc.

   (2)  

Media

     L + 325        1.00     1/22/2020        495        495        495  

 

See notes to condensed consolidated financial statements.

 

9


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

Company (a)(b)    Footnotes   Industry    Interest
Rate
     Base Rate
Floor
    Maturity
Date (c)
     No. Shares/
Principal
Amount (d)
     Cost (e)      Fair Value  

New Enterprise Stone & Lime Co., Inc.

   (f)(h)(2)   Capital Goods      L + 800        1.00     3/19/2021      $ 102,461      $ 101,604      $ 111,005  
     (f)(h)(2)          L + 800        1.00     3/19/2021        51,745        51,312        56,059  

Nine West Holdings, Inc.

   (3)   Consumer Durables & Apparel      L + 375        1.00     10/8/2019        13,074        12,904        11,178  

NMI Holdings, Inc.

   (f)(g)(2)   Insurance      L + 675        1.00     11/15/2019        37,241        36,882        37,365  

P2 Energy Solutions, Inc.

   (3)   Software & Services      L + 400        1.00     10/30/2020        4,617        4,517        4,540  

Pacific Union Financial, LLC

   (f)(2)   Diversified Financials      L + 750        1.00     4/21/2022        72,404        71,666        73,053  

Paradigm Acquisition Corp.

   (3)   Health Care Equipment & Services      L + 500        1.00     6/2/2022        10,869        10,747        10,893  

Petroplex Acidizing Inc

   (f)(i)(3)   Energy     
L + 900, 1.75% PIK
(1.75% Max PIK)
 
 
     1.00     12/5/2019        22,466        22,466        21,680  
     (f)(i)(j)         

15.00% PIK

(15.00% Max PIK)

 

 

             12/5/2019        18,420        13,809        543  

Plaskolite, LLC

   (3)   Materials      L + 400        1.00     11/3/2022        3,171        3,169        3,169  

PQ Corp.

   (3)   Materials      L + 425        1.00     11/4/2022        682        689        689  

Proserv Acquisition, LLC

   (f)(g)(3)   Energy      L + 537.5        1.00     12/22/2021        26,896        21,248        15,399  

Proserv Acquisition, LLC (GBR)

   (f)(g)(l)(3)   Energy      L + 537.5        1.00     12/22/2021        15,787        12,471        9,038  

Raley’s

   (2)   Food & Staples Retailing      L + 525        1.00     5/18/2022        11,193        10,894        11,277  

Riverbed Technology, Inc.

   (2)   Technology Hardware & Equipment      L + 400        1.00     4/25/2022        2,874        2,831        2,837  

 

See notes to condensed consolidated financial statements.

 

10


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

Company (a)(b)    Footnotes   Industry    Interest
Rate
     Base Rate
Floor
    Maturity
Date (c)
     No. Shares/
Principal
Amount (d)
     Cost (e)      Fair Value  

Safety Technology Holdings, Inc.

   (f)(2)   Technology Hardware & Equipment      L + 600        1.00     7/7/2022      $ 84      $ 74      $ 31  
   (f)(2)        L + 600        1.00     7/29/2022        7,444        7,264        7,518  
     (f)(2)          L + 600        1.00     7/29/2022        1,197        1,166        1,209  

Savers, Inc.

   (3)   Retailing      L + 375        1.25     7/9/2019        8,956        8,387        8,486  

Sears Canada, Inc. (CAN)

   (f)(g)(l)(2)   Retailing      L + 950        1.00     5/28/2019        20,833        20,332        20,437  

Sequa Corp.

   (3)   Materials      L + 550        1.00     11/28/2021        9,224        9,259        9,293  

SIRVA Worldwide, Inc.

   (3)   Commercial & Professional Services      L + 650        1.00     11/22/2022        22,694        22,165        22,808  

Smile Brands Group, Inc.

   (f)(3)   Health Care Equipment & Services      L + 625        1.00     8/15/2022        12,406        12,269        12,307  

SouthernCarlson

   (f)(3)   Capital Goods      L + 700        1.00     6/30/2022        38,349        37,864        38,019  
     (f)(3)          L + 700        1.00     7/22/2022        5,182        5,127        5,234  

ThreeSixty Group

   (f)(h)(2)   Retailing      L + 700        1.00     1/31/2024        52,770        52,018        52,162  

TruGreen, LP

   (2)   Consumer Services      L + 550        1.00     4/13/2023        4,936        4,967        4,986  

TTM Technologies, Inc.

   (g)(2)   Technology Hardware & Equipment      L + 500        1.00     5/31/2021        8,197        7,994        8,279  

Utility One Source LP

   (3)   Capital Goods      L + 550        1.00     4/7/2023        9,754        9,659        9,937  

Vee Pak, LLC

   (f)(h)(2)   Materials      L + 675        1.00     2/1/2023        50,774        50,043        50,340  

Vertafore, Inc.

   (3)   Software & Services      L + 325        1.00     6/30/2023        1,024        1,023        1,025  

Waste Pro USA, Inc.

   (f)(h)(2)   Transportation      L + 750        1.00     10/15/2020        35,764        35,764        35,764  

 

See notes to condensed consolidated financial statements.

 

11


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

Company (a)(b)    Footnotes     Industry    Interest
Rate
    Base Rate
Floor
    Maturity
Date (c)
             No. Shares/
Principal
Amount (d)
     Cost (e)      Fair Value  

Wheels Up Partners LLC

     (f)(3)     Transportation      L + 710       1.00     6/30/2024               $ 24,872      $ 24,623      $ 24,623  

Willbros Group, Inc.

     (f)(h)(3)     Energy      L + 975       1.25     12/15/2019                 25,599        25,599        26,200  

Z Gallerie, Inc.

     (f)(2)     Retailing      L + 650       1.00     10/8/2020                 31,786        31,559        31,786  

Total First Lien Senior Secured Loans

                     $ 1,682,262      $ 1,644,538  
                    

 

 

    

 

 

 

Second Lien Senior Secured Loans—42.9%

                                                                         

Abaco Systems, Inc.

     (f)(h)(3)     Capital Goods      L + 1050       1.00     6/7/2022               $ 63,371      $ 62,318      $ 64,548  

Amtek Global Technology Pte. Ltd. (SGP)

     (f)(g)(l)*(EUR)     Automobiles & Components                      11/10/2019               59,281        55,225        33,739  

Applied Systems, Inc.

     (3)     Software & Services      L + 650       1.00     1/24/2022               $ 28,789        28,893        29,142  

Belk, Inc.

     (f)(h)     Retailing      10.50             6/12/2023                 99,615        97,908        92,004  

Bon-Ton Department Stores, Inc.

     (f)(g)(3)     Retailing      L + 950       1.00     3/18/2021                 13,529        13,297        13,172  

CTI Foods Holding Co., LLC

     (2)     Food, Beverage & Tobacco      L + 725       1.00     6/28/2021                 23,219        23,015        19,852  

Culligan International Co.

     (f)(2)     Household & Personal Products      L + 850       1.00     11/15/2024                 37,500        36,785        37,014  

Dixon Hospitality Group Pty Ltd (AUS)

     (f)(g)(l)(AUD)     Consumer Services      12.00             12/15/2021        A      $ 16,694        12,556        12,643  

EagleView Technology Corp.

     (3)     Software & Services      L + 825       1.00     7/14/2023               $ 33,000        32,589        32,949  

Emerald Performance Materials, LLC

     (2)     Materials      L + 675       1.00     8/1/2022                 2,041        2,035        2,035  

Excelitas Technologies Corp.

     (f)(i)(3)     Technology Hardware & Equipment     
L + 975, 1.50% PIK
(3.00% Max PIK)
 
 
    1.00     4/29/2021                 114,989        114,989        115,172  

 

See notes to condensed consolidated financial statements.

 

12


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

Company (a)(b)    Footnotes   Industry    Interest
Rate
    Base Rate
Floor
    Maturity
Date (c)
     No. Shares/
Principal
Amount (d)
     Cost (e)      Fair Value  

Genoa, a QoL Healthcare Co., LLC

   (2)   Health Care Equipment & Services      L + 800       1.00     10/28/2024      $ 10,828      $ 10,675      $ 10,937  

Grocery Outlet, Inc.

   (3)   Food & Staples Retailing      L + 825       1.00     10/21/2022        45,346        44,340        45,743  

iParadigms Holdings, LLC

   (3)   Software & Services      L + 725       1.00     7/29/2022        22,595        22,465        21,917  

MedAssets, Inc.

   (f)(h)(2)   Health Care Equipment & Services      L + 975       1.00     4/20/2023        63,000        61,327        62,891  

Misys, Ltd. (GBR)

   (g)(l)(3)   Software & Services      L + 725       1.00     6/13/2025        8,403        8,340        8,581  

NBG Home

   (f)(3)   Consumer Durables & Apparel      L + 900       1.00     9/30/2024        34,205        33,697        34,010  

NEP Group, Inc.

   (3)   Media      L + 875       1.25     7/22/2020        8,891        8,946        8,952  

P2 Energy Solutions, Inc.

   (3)   Software & Services      L + 800       1.00     4/30/2021        3,793        3,648        3,649  
     (3)          L + 800       1.00     4/30/2021        74,312        72,945        71,494  

Petrochoice Holdings, Inc.

   (f)(h)(3)   Capital Goods      L + 875       1.00     8/21/2023        65,000        63,362        64,549  

Plaskolite, LLC

   (f)(2)   Materials      L + 900       1.00     11/3/2023        33,543        32,653        33,877  

Polyconcept North America, Inc.

   (f)(2)   Consumer Durables & Apparel      L + 1000       1.00     12/31/2023        29,376        28,721        28,649  

Press Ganey Holdings, Inc.

   (2)   Health Care Equipment & Services      L + 725       1.00     10/21/2024        6,703        6,639        6,870  

Sequa Corp.

   (3)   Materials      L + 900       1.00     4/28/2022        20,976        20,791        21,448  

SquareTwo Financial Corp.

   (f)(i)(j)(4)   Diversified Financials     

L + 1000 PIK

(L + 1000 Max PIK

 

    1.00     5/24/2019        7,338        7,111        1,249  

Sungard Public Sector LLC

   (f)(h)(3)   Software & Services      L + 850       1.00     1/30/2025        24,346        24,111        24,354  

 

See notes to condensed consolidated financial statements.

 

13


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

Company (a)(b)    Footnotes   Industry    Interest
Rate
    Base Rate
Floor
    Maturity
Date (c)
     No. Shares/
Principal
Amount (d)
     Cost (e)      Fair Value  

Valeo Foods Group Ltd. (IRL)

   (f)(g)(l)(3)(GBP)   Food, Beverage & Tobacco      L + 800       1.00     5/8/2023      £ 29,125        43,807        37,934  

Vencore, Inc.

   (3)   Capital Goods      L + 875       1.00     5/23/2020        87,673        86,853        88,495  

Vertafore, Inc.

   (f)(3)   Software & Services      L + 900       1.00     6/30/2024        81,500        79,307        82,036  

Vestcom International, Inc.

   (f)(2)   Consumer Services      L + 850       1.00     4/28/2024        58,000        57,194        58,356  

WireCo WorldGroup, Inc.

   (3)   Capital Goods      L + 900       1.00     9/30/2024        11,226        11,155        11,338  

Total Second Lien Senior Secured Loans

                  $ 1,207,697      $ 1,179,599  
                 

 

 

    

 

 

 

Other Senior Secured Debt—4.3%

                                                            

Angelica Corp.

   (f)(i)   Health Care Equipment & Services     

10.00% PIK

(10.00% Max PIK)

 

 

            12/30/2022      $ 34,205      $ 33,521      $ 33,521  

Artesyn Technologies, Inc.

   (m)  

Technology Hardware & Equipment

     9.75             10/15/2020        19,443        18,894        18,763  

Direct ChassisLink, Inc.

   (m)   Transportation      10.00             6/15/2023        17,810        19,229        19,769  

DJO Finance, LLC

   (m)   Health Care Equipment & Services      8.13             6/15/2021        9,950        9,162        9,254  

Maxim Crane, LP

   (m)   Capital Goods      10.13             8/1/2024        4,496        4,541        4,934  

NESCO, LLC

   (m)   Capital Goods      6.88             2/15/2021        10,363        6,841        8,394  

Rockport Group, LLC

   (f)   Consumer Durables & Apparel      9.50             7/31/2022        28,516        27,956        23,639  

Total Other Senior Secured Debt

                  $ 120,144      $ 118,274  
                 

 

 

    

 

 

 

Total Senior Debt

                  $ 3,010,103      $ 2,942,411  
                 

 

 

    

 

 

 
                                               

 

 

    

 

 

 

 

See notes to condensed consolidated financial statements.

 

14


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

Company (a)(b)    Footnotes   Industry    Interest
Rate
    Base Rate
Floor
    Maturity
Date (c)
     No. Shares/
Principal
Amount (d)
     Cost (e)      Fair Value  

Subordinated Debt—18.3%

                                                            

Alion Science & Technology Corp.

   (f)(h)(m)   Capital Goods      11.00             8/19/2022      $ 68,603      $ 67,764      $ 68,971  

Cemex Materials, LLC

   (m)   Materials      7.70             7/21/2025        58,454        61,828        64,592  

Exemplis Corp.

   (f)(i)(3)   Commercial & Professional Services     

L + 700, 4.00% PIK

(4.00% Max PIK)

 

 

            3/23/2020        17,211        17,211        17,340  

Hilding Anders (SWE)

   (f)(g)(i)(l)(n)(EUR)   Consumer Durables & Apparel     

13.00% PIK

(13.00% Max PIK)

 

 

      6/30/2021      87,825        100,146        73,933  
   (f)(g)(i))(j)(l)(n)(EUR)       

12.00% PIK

(12.00% Max PIK)

 

 

      12/31/2022        2,733        507        761  
   (f)(g)(i)(j)(l)(n)(EUR)       

12.00% PIK

(12.00% Max PIK)

 

 

      12/31/2023        22,230        939        1  
     (f)(g)(i)(j)(l)(n)(EUR)         

18.00% PIK

(18.00% Max PIK)

 

 

            12/31/2024        35,185        12,851        9,792  

Home Partners of America

   (f)(k)(2)   Real Estate      L + 700       1.00     6/8/2023      $ 75,000        73,640        75,750  

Intelsat Jackson Holdings SA (LUX)

   (g)(l)(m)   Media      9.80             7/15/2025        1,241        1,241        1,240  

Kenan Advantage Group, Inc.

   (m)   Transportation      7.88             7/31/2023        2,308        2,209        2,423  

Lightower Fiber, LLC

   (f)   Telecommunication Services      10.00%         2/12/2022        11,555        11,372        11,786  
   (f)(i)       

12.00

(12.00

% PIK 

% Max PIK) 

      8/12/2025        10,608        10,454        10,820  

 

See notes to condensed consolidated financial statements.

 

15


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

Company (a)(b)    Footnotes   Industry    Interest
Rate
    Base Rate
Floor
    Maturity
Date (c)
     No. Shares/
Principal
Amount (d)
     Cost (e)      Fair Value  

PQ Corp.

   (f)(m)(3)   Materials      L + 1075       1.00     5/1/2022      $ 133,488      $ 131,147      $ 141,514  

Vertiv Group Corp.

   (m)   Technology Hardware & Equipment      9.30             10/15/2024        22,713        22,941        24,530  

Total Subordinated Debt

                  $ 514,250      $ 503,453  
                 

 

 

    

 

 

 

Asset Based Finance—14.2%

                                                            

Central Park Leasing SARL (LUX), Partnership Interest

   (f)(g)(l)   Capital Goods                               N/A      $ 63,994      $ 68,954  

Comet Aircraft SARL (LUX), Common Shares

   (f)(g)(l)(n)   Capital Goods                               49,618        49,618        40,191  

GA Capital Specialty Lending Fund, Limited Partnership Interest

   (f)(g)   Diversified Financials                               N/A        83,861        83,861  

Guardian Investors, LLC, Membership Interest

   (f)(g)(n)   Diversified Financials                               N/A        8,036        2,924  

Innovating Partners, LLC, Membership Interest

   (f)(g)(n)   Diversified Financials                               N/A        10,464        3,356  

LSF IX Java Investments, Ltd (IRL)

   (f)(g)(l)(8)(EUR)   Diversified Financials      E + 315               12/3/2019      56,406        52,910        62,369  

Orchard Marine, Ltd. (VGB), Class B Common Stock

   (f)(g)(k)(l)*   Transportation             1,964        3,069        —    

Orchard Marine, Ltd. (VGB), Series A Preferred Stock

   (f)(g)(i)(k)(l)(o)          9.00                      58,920        57,963        18,262  

Star Mountain SMB Multi-Manager Credit Platform, LP, Limited Partnership Interest

   (f)(g)   Diversified Financials                               N/A        49,634        55,834  

Toorak Capital Partners, LLC, Membership Interest

   (f)(g)(n)*   Diversified Financials                               N/A        24,832        26,567  

 

See notes to condensed consolidated financial statements.

 

16


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

Company (a)(b)    Footnotes   Industry    Interest
Rate
    Base Rate
Floor
     Maturity
Date (c)
     No. Shares/
Principal
Amount (d)
     Cost (e)      Fair Value  

Trade Finance Funding I, Ltd. (CYM), 2013-1A Class B

   (f)(g)(l)(m)*   Diversified Financials      10.75              11/13/2018      $ 27,890      $ 27,890      $ 27,890  

Total Asset Based Finance

                   $ 432,271      $ 390,208  
                  

 

 

    

 

 

 

Strategic Credit Opportunities Partners, LLC—3.6%

                                                             

Strategic Credit Opportunities Partners, LLC, Units

   (f)(g)(n)   Diversified Financials                                92,400      $ 92,400      $ 98,101  

Strategic Credit Opportunities Partners, LLC

                   $ 92,400      $ 98,101  

Equity/Other—7.5%

                                                             

Algeco/Scotsman Holdings SARL (LUX), Common Stock

   (f)(g)(l)*   Consumer Durables & Apparel                                301      $ 2,996      $ 2,996  

Alion Science & Technology Corp., Class A Membership Interest

   (f)*   Capital Goods                                N/A        7,350        6,517  

AltEn, LLC, Membership Units

   (f)(k)*   Energy                                2,384        2,955        —    

Amtek Global Technology Pte. Ltd. (SGP), Warrants

   (f)(g)(l)*(EUR)   Automobiles & Components           12/31/2017        9,991        4,636        —    

Amtek Global Technology Pte. Ltd. (SGP), Warrants

   (f)(g)(l)*(EUR)                           12/31/2018        9,991        4,785        —    

Angelica Corp., Limited Partnership Interest

   (f)*   Health Care Equipment & Services                                877,044        50,868        10,749  

Belk, Inc., Units

   (f)   Retailing                                1,642        7,846        3,811  

Cengage Learning Holdings II, LP, Common Stock

   (f)   Media                                227,802        7,529        4,156  

 

See notes to condensed consolidated financial statements.

 

17


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

Company (a)(b)    Footnotes   Industry    Interest
Rate
     Base Rate
Floor
     Maturity
Date (c)
     No. Shares/
Principal
Amount (d)
     Cost (e)      Fair Value  

Dixon Hospitality Group Pty Ltd. (AUS), Equity Earn-Out

   (f)(g)(l)*(AUD)   Consumer Services                                 N/A      $ 1,598      $ 1,608  

Education Management Corp., Common Stock

   (f)*   Consumer Services               3,779,591        1,046        —    

Education Management Corp., Warrants

   (f)*                            1/5/2022        2,320,791        371        —    

Excelitas Technologies Corp., Class A Membership Interest

   (f)*   Technology Hardware & Equipment                                 N/A        5,636        7,007  

Genesys Telecommunications Laboratories, Inc., Class A Shares

   (f)*   Technology Hardware & Equipment               40,529        —          —    

Genesys Telecommunications Laboratories, Inc., Class A1-A5 shares

   (f)*                 3,463,150        120        663  

Genesys Telecommunications Laboratories, Inc., Ordinary Shares

   (f)*                 2,768,806        —          —    

Genesys Telecommunications Laboratories, Inc., Ordinary Shares

   (f)*                 41,339        —          —    

Genesys Telecommunications Laboratories, Inc., Preferred Shares

   (f)*                                     1,050,465        —          —    

Hilding Anders (SWE), Arle PIK Interest

   (f)(g)(i)(j)(l)*(EUR)   Consumer Durables & Apparel               N/A        —          —    

Hilding Anders (SWE), Class A Common Stock

   (f)(g)(l)(n)*(SEK)                 4,503,411        132        —    

Hilding Anders (SWE), Class B Common Stock

   (f)(g)(l)(n)*(SEK)                 574,791        25        —    

Hilding Anders (SWE), Class C Common Stock

   (f)(g)(l)(n)*(SEK)                 213,201        —          —    

Hilding Anders (SWE), Equity Options

   (f)(g)(l)(n)*(SEK)                            12/31/2020        236,160,807        14,988        3,568  

 

See notes to condensed consolidated financial statements.

 

18


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 


Company (a)(b)
  
Footnotes
 
Industry
   Interest
Rate
     Base
Rate
Floor
     Maturity
Date (c)
     No.
Shares/
Principal
Amount (d)
    
Cost (e)
    
Fair
Value
 

Home Partners of America, Common Stock

   (f)(k)*  

Real Estate

            $ 100,044      $ 101,876      $ 123,838  

Home Partners of America, Warrants

   (f)(k)*                            8/7/2024        2,674        292        788  

Jones Apparel Group Holdings, Inc., Common Stock

   (f)*  

Consumer Durables & Apparel

                                5,451        872        2,180  

Keystone Australia Holdings, Pty. Ltd. (AUS), Residual Claim

   (f)(g)(l)*(AUD)  

Consumer Services

                                N/A        2,091        2,103  

KKR BPT Holdings Aggregator, LLC, Membership Interest

   (f)(g)(n)*  

Diversified Financials

                                N/A        12,500        9,170  

Louisiana-Pacific Corp , Lien Reserve Claim

   (f)*  

Materials

                                380        —          380  

NBG Home, Common Stock

   (f)*  

Consumer Durables & Apparel

                                1,903        2,565        2,581  

Nine West Holdings, Inc., Common Stock

   (f)*  

Consumer Durables & Apparel

                                5,451        6,541        —    

OAG Holdings, LLC, Overriding Royalty Interest

   (f)  

Energy

                                N/A        2,354        —    

Petroplex Acidizing Inc, Warrants

   (f)*  

Energy

                       12/29/2026        8        —          —    

Polyconcept North America, Inc., Class A-1 Units

   (f)*  

Consumer Durables & Apparel

                                29,376        2,938        2,628  

PQ Corp., Class B Common Stock

   (f)*  

Materials

                                18,059        3,337        3,701  

Sentry Holdings, Ltd. (JEY), Common Shares A

   (f)(g)(l)*(GBP)  

Insurance

              16,450        —          —    

Sentry Holdings, Ltd. (JEY), Preferred B Shares

   (f)(g)(l)*(GBP)                                     6,113,719        9,064        8,488  

 

 

See notes to condensed consolidated financial statements.

 

19


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

Company (a)(b)  

Footnotes

  Industry  

Interest

Rate

    Base Rate
Floor
    Maturity
Date (c)
   

No. Shares/

Principal

Amount (d)

   

Cost (e)

   

Fair Value

 

SquareTwo Financial Corp., Series A Preferred Stock

  (f)(i)(j)   Diversified Financials     12.50                     16,044       5,457       —    

Stuart Weitzman, Inc., Common Stock

  (f)*   Consumer Durables & Apparel                             5,451       —         1,423  

Towergate (GBR), Ordinary Shares

  (f)(g)(l)*(GBP)   Insurance                             116,814       173       162  

Willbros Group, Inc., Common Stock

  *   Energy                             2,810,814       7,760       6,943  

Total Equity/Other

 

  $ 270,701     $ 205,460  
             

 

 

   

 

 

 

Total Investments, excluding Short Term Investments — 150.6%

              $ 4,319,725     $ 4,139,633  
             

 

 

   

 

 

 

Short Term Investments—0.1%

                                                   

Goldman Sachs Financial Square Funds - Treasury Instruments Fund

  (q)         0.71                     1,445,148     $ 1,445     $ 1,445  

Total Short Term Investments

 

  $ 1,445     $ 1,445  
             

 

 

   

 

 

 

TOTAL INVESTMENTS — 150.7%(r)

 

  $ 4,321,170     $ 4,141,078  
             

 

 

   

 

 

 

LIABILITIES IN EXCESS OF OTHER ASSETS—(50.6%)

 

      (1,391,180
               

 

 

 

NET ASSETS—100.0%

 

    $ 2,749,898  
               

 

 

 

Derivative Instruments (Note 4)—(0.4%)

                                                   

Cross Currency Swaps

 

  $ —         (8,310

Foreign currency forward contracts

 

  $ —         (8,477

Interest rate swaps

                                          $ —         7,176  

Total Derivative Instruments

 

  $ —       $ (9,611
             

 

 

   

 

 

 

 

See notes to condensed consolidated financial statements.

 

20


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

(a) Security may be an obligation of one or more entities affiliated with the named company.

 

(b) Non-controlled/non-affiliated investments as defined by the Investment Company Act of 1940, as amended (“1940 Act”), unless otherwise indicated. Non-controlled/non-affiliated investments are investments that are neither controlled investments nor affiliated investments.

 

(c) Represents maturity of debt securities and expiration of applicable equity investments.

 

(d) Denominated in U.S. dollars unless otherwise noted.

 

(e) Represents amortized cost for debt securities and cost for equity investments translated to U.S. dollars.

 

(f) Investments classified as Level 3 whereby fair value was determined by the Company’s Board of Directors. (see Note 2).

 

(g) The investment is not a qualifying asset as defined in Section 55(a) under the 1940 Act. A business development company may not acquire any asset other than qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets. The Company calculates its compliance with the qualifying assets test on a “look through” basis by disregarding the value of the Company’s total return swaps and treating each loan underlying the total return swaps as either a qualifying asset or non-qualifying asset based on whether the obligor is an eligible portfolio company. On this basis, 75.9% of the Company’s total assets represented qualifying assets as of June 30, 2017.

 

(h) Security or portion thereof was held within CCT New York Funding LLC (formerly, CCT SE I LLC) and was pledged as collateral supporting the amounts outstanding under the revolving credit facility with JPMorgan Chase Bank as of June 30, 2017.

 

(i) The underlying credit agreement or indenture contains a PIK provision, whereby the issuer has either the option or the obligation to make interest payments with the issuance of additional securities. The interest rate in the schedule represents the current interest rate in effect for these investments.

 

(j) Investment was on non-accrual status as of June 30, 2017.

 

See notes to condensed consolidated financial statements.

 

21


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

(k) Affiliated investment as defined by the 1940 Act, whereby the Company owns between 5% and 25% of the portfolio company’s outstanding voting securities and the investments are not classified as controlled investments. The aggregate fair value of non-controlled, affiliated investments at June 30, 2017 represented 8.1% of the Company’s net assets. Fair value as of June 30, 2017 along with transactions during the six months ended June 30, 2017 in these affiliated investments were as follows (amounts in thousands):

 

            Six Months Ended June 30, 2017            Six Months Ended June 30, 2017  

Non-Controlled, Affiliated

Investments

   Fair Value at
December 31,
2016
     Gross Additions
(Cost)*
     Gross
Reductions
(Cost)**
     Net Unrealized
Gain (Loss)
    Fair Value at
June 30,
2017
     Net Realized
Gain (Loss)
     Interest
Income***
     Fee
Income
     Dividend
Income
 

AltEn, LLC

                         

Membership Units

   $ —        $ —        $ —        $ —       $ —        $ —        $ —        $ —        $ —    

Term Loan

     8,733        —          —          (3,296     5,437        —          —          —          —    

Home Partners of America, Inc.

                         

Surbordinated Debt

     —          73,640        —          2,110       75,750        —          3,122        —          —    

Common Stock

     113,013        2,150        —          8,675       123,838        —          —          —          —    

Warrants

     607        —          —          181       788        —          —          —          —    

Orchard Marine, Ltd.

                         

Class B Common Stock

     —          —          —          —         —          —          —          —          —    

Series A Preferred Stock

     20,502        6,138        —          (8,378     18,262        —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Totals

   $ 142,855      $ 81,928      $ —        $ (708   $ 224,075      $ —        $ 3,122      $ —        $ —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

* Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.
** Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.
*** Includes payment-in-kind interest income.    

 

(l) A portfolio company domiciled in a foreign country. The jurisdiction of the security issuer may be a different country than the domicile of the portfolio company.

 

(m) This security was acquired in a transaction that was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Rule 144A thereunder. This security may be resold only in transactions that are exempt from the registration requirements of the Securities Act.

 

See notes to condensed consolidated financial statements.

 

22


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

(n) Controlled investment as defined by the 1940 Act, whereby the Company owns more than 25% of the portfolio company’s outstanding voting securities or maintains the ability to nominate greater than 50% of the board representation. The aggregate fair value of controlled at June 30, 2017 represented 9.8% of the Company’s net assets. Fair value as of June 30, 2017 along with transactions during the six months ended June 30, 2017 in these controlled investments were as follows (amounts in thousands):

 

          Six Months Ended June 30, 2017            Six Months Ended June 30, 2017  

Controlled Investments

  

Fair Value at
December 31,
2016

   Gross
Additions
(Cost)*
     Gross Reductions
(Cost)**
    Net Unrealized
Gain (Loss)
    Fair Value at June
30, 2017
     Net Realized
Gain (Loss)
    Interest
Income
     Fee
Income
     Dividend
Income
 

Comet Aircraft S.A.R.L

   $49,157    $ —        $ —       $ (8,966   $ 40,191      $ —       $ —        $ —        $ 4,796  

Guardian Investors, LLC

   3,704      —          (824     44       2,924        —         —          —          —    

Hilding Anders

                       

Subordinated Debt

   84,693      —          (29,862     29,656       84,487        (7,413     5,403        —          —    

Class A Common Stock

   —        —          —         —         —          —         —          —          —    

Class B Common Stock

   —        —          —         —         —          —         —          —          —    

Class C Common Stock

   —        —          —         —         —          —         —          —          —    

Equity Options

   2,253      —          —         1,315       3,568        —         —          —          —    

Innovating Partners, LLC

   4,372      —          (899     (117     3,356        —         —          —          —    

KKR BPT Holdings

                       

Aggregator, LLC

   9,835      500        (1,200     35       9,170        —         —          —          —    

Strategic Credit

                       

Opportunities Partners, LLC

   98,998      —          —         (897     98,101        —         —          —          5,797  

Toorak Capital Partners, LLC

   6,984      17,848        —         1,735       26,567        —         —          —          —    
  

 

  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Totals

   $259,996    $ 18,348      $ (32,785   $ 22,805     $ 268,364      $ (7,413   $ 5,403      $ —        $ 10,593  
  

 

  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

* Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.
** Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.
(o) The issuer of this investment has elected to pay the stated dividend rate upon liquidation of the investment.
(p) Expiration date contingent on certain events pursuant to underlying agreements.
(q) 7-day effective yield as of June 30, 2017.
(r) As of June 30, 2017, the aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost was $132,071; the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value was $312,163; the net unrealized depreciation was $180,092; the aggregate cost of securities for federal income tax purposes was $4,321,170.
* Non-income producing security.
(1) Not used.
(2) The interest rate on these investments is subject to a base rate of 1-Month LIBOR, which at June 30, 2017 was 1.22%. The current base rate for each investment may be different from the reference rate on June 30, 2017.
(3) The interest rate on these investments is subject to a base rate of 3-Month LIBOR, which at June 30, 2017 was 1.30%. The current base rate for each investment may be different from the reference rate on June 30, 2017.
(4) The interest rate on these investments is subject to a base rate of 12-Month LIBOR, which at June 30, 2017 was 1.74%. The current base rate for each investment may be different from the reference rate on June 30, 2017.

 

See notes to condensed consolidated financial statements.

 

23


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Condensed Consolidated Schedule of Investments (unaudited) (continued)

As of June 30, 2017

(in thousands, except share amounts)

 

(5) The interest rate on these investments is subject to the base rate of 3-month EURIBOR, which at June 30, 2017 was (0.33%). The current base rate for each investment may be different from the reference rate on June 30, 2017.
(6) The interest rate on these investments is subject to a base rate of 2-Month LIBOR, which at June 30, 2017 was 1.25%. The current base rate for each investment may be different from the reference rate on June 30, 2017.
(7) The interest rate on these investments is subject to a base rate of 6-Month LIBOR, which at June 30, 2017 was 1.45%. The current base rate for each investment may be different from the reference rate on June 30, 2017.
(8) The interest rate on these investments is subject to the base rate of 1-month EURIBOR, which at June 30, 2017 was (0.37%). The current base rate for each investment may be different from the reference rate on June 30, 2017.

Abbreviations:

AUD - Australian Dollar; local currency investment amount is denominated in Australian Dollar. A$1 / US $0.769 as of June 30, 2017.

GBP - British Pound Sterling; local currency investment amount is denominated in Pound Sterling. £1 / US $1.302 as of June 30, 2017.

EUR - Euro; local currency investment amount is denominated in Euros. €1 / US $1.142 as of June 30, 2017.

SEK - Swedish Krona; local currency investment amount is denominated in Swedish Kronor. SEK1 / US $0.119 as of June 30, 2017.

AUS - Australia

CAN - Canada

CYM - Cayman Islands

GBR - United Kingdom

IRL - Ireland

JEY - Jersey

LUX - Luxembourg

SGP - Singapore

SPN - Spain

SWE - Sweden

VGB - British Virgin Islands

E = EURIBOR - Euro Interbank Offered Rate

L = LIBOR - London Interbank Offered Rate, typically 3-Month

PIK - Payment-in-kind; the issuance of additional securities by the borrower to settle interest payment obligations.

 

See notes to condensed consolidated financial statements.

 

24


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Consolidated Schedule of Investments

As of December 31, 2016

(in thousands, except share amounts)

 


Company (a)(b)
  
Footnotes
    
Industry
   Interest
Rate
     Base
Rate
Floor
    Maturity
Date (c)
     No. Shares/
Principal
Amount (d)
    
Cost (e)
    
Fair Value
 

First Lien Senior Secured Loans—56.1%

 

A10 Capital, LLC

     (f)(g)(3)      Real Estate      L + 700        1.00     10/15/2021      $ 27,659      $ 27,339      $ 27,936  

Abaco Systems, Inc.

     (f)(h)(2)      Capital Goods      L + 600        1.00     12/7/2021        65,678        63,136        64,364  

ABILITY Network, Inc.

     (2)      Health Care Equipment & Services      L + 500        1.00     5/14/2021        634        625        637  

Accuride Corp.

     (2)      Capital Goods      L + 700        1.00     11/3/2023        11,004        10,676        10,784  

Agro Merchants NAI Holdings, LLC

     (f)(h)(2)      Transportation      L + 700        1.00     10/1/2020        73,448        72,814        72,826  

Algeco/Scotsman (LUX)

     (f)(g)(i)(j)(k)      Consumer Durables & Apparel     

15.75% PIK

(15.75% Max PIK)

 

 

             5/1/2018        41,958        32,642        8,024  

AltEn, LLC

     (f)(j)(k)(l)(3)      Energy     

L + 900

(L + 900 Max PIK)

 

 

             9/12/2018        36,567        29,836        8,733  

AM General LLC

     (f)(h)(2)      Automobiles & Components      L + 725        1.00     12/28/2021        97,338        95,880        95,878  

American Freight, Inc.

     (f)(2)      Retailing      L + 625        1.00     10/31/2020        32,036        31,925        32,036  

Amtek Global Technology Pte. Ltd. (SGP)

     (f)(g)(i)(5)(EUR)      Automobiles & Components      E + 900        1.00     11/10/2019      7,633        8,338        7,876  
     (f)(g)(i)(5)(EUR)           E + 900        1.00     11/10/2019        56,564        57,986        58,366  
     (f)(g)(i)(5)(EUR)           E + 900        1.00     11/10/2019        58,055        59,514        59,905  
       (f)(g)(i)(5)(EUR)             E + 900        1.00     11/10/2019        8,078        8,281        8,336  

 

See notes to consolidated financial statements.

 

25


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Consolidated Schedule of Investments (continued)

As of December 31, 2016

(in thousands, except share amounts)

 


Company (a)(b)
  
Footnotes
  
Industry
   Interest
Rate
     Base
Rate
Floor
    Maturity
Date (c)
     No. Shares/
Principal
Amount (d)
    
Cost (e)
    
Fair Value
 

BeyondTrust Software, Inc.

   (f)(2)    Software & Services      L + 700        1.00     9/25/2019      $ 11,926      $ 11,841      $ 11,548  

Casual Dining BidCo, Ltd. (GBR)

   (f)(g)(i)(2)(GBP)    Consumer Services      L + 825              12/11/2020      £ 40,546        60,338        49,635  

Centric Group, LLC

   (f)(7)    Retailing      P + 575          10/14/2021      $ 652        526        127  
     (f)(3)           L + 675        1.00     10/14/2022        75,000        73,540        74,691  

Charlotte Russe, Inc.

   (2)    Retailing      L + 550        1.25     5/22/2019        4,478        4,463        2,723  
     (2)           L + 550        1.25     5/22/2019        18,291        18,190        11,123  

Dentix (SPN)

   (f)(g)(i)(5)(EUR)   

Health Care Equipment & Services

     E + 825                12/14/2021      21,000        21,161        21,159  

Distribution International, Inc.

   (2)    Retailing      L + 500        1.00     12/15/2021      $ 4,148        3,494        3,588  

EagleView Technology Corp.

   (2)    Software & Services      L + 425        1.00     7/15/2022        6,913        6,856        6,941  

FleetPride Corp.

   (2)    Capital Goods      L + 400        1.25     11/19/2019        888        786        844  

Greystone & Co., Inc.

   (f)(2)    Diversified Financials      L + 800        1.00     3/26/2021        33,080        32,685        32,746  

Gymboree Corp.

   (2)    Retailing      L + 350        1.50     2/23/2018        10        8        5  

Imagine! Print Solutions, Inc.

   (f)(2)    Media      L + 625        1.00     3/31/2023        14,888        14,345        14,888  

iPayment, Inc.

   (2)    Software & Services      L + 525        1.50     5/8/2017        11,885        11,871        11,469  

Jacuzzi Brands, Inc.

   (f)(2)    Capital Goods      L + 650        1.25     7/3/2019        16,132        15,970        15,909  
     (f)(2)           L + 650        1.25     7/3/2019        15,000        14,700        14,792  

 

 

See notes to consolidated financial statements.

 

26


Table of Contents

Corporate Capital Trust, Inc. and Subsidiaries

Consolidated Schedule of Investments (continued)

As of December 31, 2016

(in thousands, except share amounts)

 


Company (a)(b)
  
Footnotes
  
Industry
   Interest
Rate
    Base
Rate
Floor
    Maturity
Date (c)
            No. Shares/
Principal
Amount (d)
    
Cost (e)
    
Fair
Value
 

Jacuzzi Brands, Inc. (LUX)

   (f)(i)(2)    Capital Goods      L + 650       1.25     7/3/2019               $ 20,118      $ 19,916      $ 19,840  

JHT Holdings, Inc.

   (f)(h)(2)    Capital Goods      L + 850       1.00     5/4/2022                 36,025        35,366        36,613  

KeyPoint Government Solutions, Inc.

   (f)(2)    Capital Goods      L + 650       1.25     11/13/2017                 27,902        27,774        27,902  

Keystone Australia Holdings, Pty. Ltd. (AUS)

   (f)(g)(i)(k)(m)(AUD)    Consumer Services      15.00             8/7/2019        A      $ 31,021        27,501        11,813  

Koosharem, LLC

   (h)(2)   

Commercial & Professional Services

     L + 650       1.00     5/15/2020               $ 19,006        18,882        17,224  

Marshall Retail Group, LLC

   (f)(2)    Retailing      L + 600       1.00     8/25/2020                 16,468        16,354        14,825  

MCS AMS Sub-Holdings, LLC

   (h)(2)   

Commercial & Professional Services

     L + 650       1.00     10/15/2019                 24,994        24,557        23,369  

NEP Group, Inc.

   (2)    Media      L + 325       1.00     1/22/2020                 497        490        501  

New Enterprise Stone & Lime Co., Inc.

   (f)(h)(2)    Capital Goods      L + 850       1.00     3/19/2021           102,461        101,519        104,833  
     (f)(h)(2)           L + 850       1.00     3/19/2021                 51,745        51,269        52,943  

Nine West Holdings, Inc.

   (2)    Consumer Durables & Apparel      L + 375       1.00     10/8/2019                 13,281        13,110        8,325  

NMI Holdings, Inc.

   (f)(g)(2)    Insurance      L + 750       1.00     11/15/2018                 37,431        37,071        37,398  

P & L Development, LLC

   (f)(h)(j)(3)   

Pharmaceuticals, Biotechnology & Life Sciences

    
L + 750, 1.00% PIK
(1.00% Max PIK)
 
 
    1.00     5/1/2020                 56,312        55,918        56,892