Capitala Finance Corp. said Tuesday its sold its common equity investment in Corporate Visions Inc. The sale produced $9.7 million proceeds for Capitala, generating a $7.1 million realized gain. Capitala was repaid at par, $11.5 million, in respect of its senior subordinated note. Capitala has re-invested $17.3 million of its proceeds in CVI, consisting of $15.8 million of senior subordinated debt and $1.5 million of common equity. On Monday, Sentinel Capital Partners said had acquired Corporate Visions, a marketing and sales messaging company.
Capitala Finance Corp. (the “Company” or “Capitala”) (Nasdaq:CPTA) announced today a $7.1 million realized gain from the full realization of its investment in Corporate Visions, Inc. (“CVI”), a leading marketing and sales messaging, tools and training company.
On May 29, 2015, Capitala sold its common equity investment in CVI for cash proceeds of $9.7 million, generating a $7.1 million realized gain. In addition, Capitala was repaid at par, $11.5 million, in respect of its senior subordinated note. The Company has re-invested $17.3 million of its proceeds in CVI, consisting of $15.8 million of senior subordinated debt and $1.5 million of common equity.
“Capitala re-invested in the new transaction to support a best in class equity sponsor,” says Joseph B. Alala, III, Chairman and CEO of Capitala. “We are also excited to partner again with CVI to support their continued growth and work with one of the strongest management teams in the industry.”
Management is pleased to report continued progress on lowering the overall percentage of equity investments in the Company’s portfolio, while generating realized gains. Thus far during 2015, the Company has had monetizations of its three largest equity investments, including complete realizations of two of these investments, generating $20.6 million in gross realized gains, excluding 420,252 shares of Boot Barn, Inc. held by the Company.
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 100 transactions, representing approximately $700 million of investments in a variety of industries throughout North America. Capitala Group manages both public capital (Capitala Finance Corp. (Nasdaq:CPTA)) and private capital (including but not limited to the CapitalSouth Growth Fund) for its investors and seeks to partner with strong management teams to create value and serve as long term partners. For more information on the company, please visit www.CapitalaGroup.com.