CHARLOTTE, N.C.--(BUSINESS WIRE)--
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.
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180103006212/en/
Capitala Finance Corp.
Stephen Arnall, 704-376-5502
Source: Capitala Finance Corp.
News Provided by Acquire Media