Capitala Finance Corp. Announces Investment Activity and Insider Share Purchases
January 03 2018 - 4:30PM
Business Wire
Capitala Finance Corp. (the “Company”, “our”, or “Capitala”)
(Nasdaq:CPTA) announced investment activity for the fourth quarter
of 2017 as well as an increase in share ownership by insiders.
During the fourth quarter of 2017, the Company invested $34.7
million in three new portfolio companies. The investments included
$31.7 million of unitranche senior secured debt yielding 11.8%, and
$3.0 million of equity. In addition, the Company exited one of its
equity investments resulting in a realized gain of $2.5
million.
At year-end, ownership of shares held by executive officers and
members of the Board of Directors totaled approximately 9.1%, an
increase of approximately 10% from September 30, 2017.
Chairman and CEO Joseph B. Alala, III, stated, “The Company had
an active quarter closing several unitranche senior secured loans
with an average yield of approximately 11.8%. In addition, we are
pleased to have exited one of our larger equity positions at fair
value. We continue to focus on investing in senior secured
securities and expect additional equity monetizations in 2018.
Executive officers and members of the Board of Directors continue
to buy shares of the Company, collectively owning approximately
9.1% at year-end.”
The foregoing description of the Company’s investment activity
during the fourth quarter of 2017 is not a comprehensive statement
of our financial condition or results for the period from October
1, 2017 through December 31, 2017. Be advised that our actual
results for the three months ended December 31, 2017 are not known
as of January 3, 2018 and are subject to the completion of our
financial closing procedures, final adjustments and other
developments, including changes in interest rates or changes in the
businesses to whom we have made loans, which may arise between now
and the time that our financial results for the three months ended
December 31, 2017 are finalized. The foregoing information has been
prepared by, and is the responsibility of, management. Neither our
independent registered public accounting firm nor our Board of
Directors have audited, reviewed, compiled, or performed any
procedures with respect to the accompanying financial data.
About Capitala Finance Corp.
Capitala Finance Corp. is a business development company that
invests primarily in first and second liens, subordinated debt and,
to lesser extent, equity securities issued by lower and traditional
middle-market companies. The Company is managed by Capitala
Investment Advisors, LLC. For more information on Capitala, or to
automatically receive email notifications of Company financial
information, press releases, stock alerts, or other corporate
filings, please visit the Investor Relations section of our
website.
About Capitala Group
Capitala Group is a leading provider of capital to lower and
traditional middle market companies, through its family of credit
focused funds. Since 1998, Capitala Group's managed funds have
participated in over 140 transactions, representing over $1.3
billion of investments in a variety of industries throughout North
America. Capitala Group manages both public capital (Capitala
Finance Corp.) (Nasdaq:CPTA) and private capital (Capitala Private
Credit Fund V, L.P. and CapitalSouth SBIC Fund IV, L.P.) for
institutional and individual investors, and seeks to partner with
strong management teams to create value and serve as long term
partners. For more information, please visit
www.CapitalaGroup.com.
Forward-Looking Statements
This press release contains certain forward-looking statements.
Words such as “believes,” “intends,” “expects,” “projects,”
“anticipates,” and “future” or similar expressions are intended to
identify forward-looking statements. These forward-looking
statements are not guarantees of future performance, condition or
results and involve a number of risks and uncertainties. Actual
results may differ materially from those in the forward-looking
statements as a result of a number of factors, including those
described from time to time in the Company’s filings with the
Securities and Exchange Commission. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20180103006212/en/
Capitala Finance Corp.Stephen Arnall, 704-376-5502Chief
Financial Officersarnall@capitalagroup.com
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