Capitala Finance Corp.(the "Company" or "Capitala") (Nasdaq:CPTA) announced today that it has recently exited its investment in KBP Investments, LLC ("KBP"), a holding company for one of the largest quick-service restaurant franchisee systems in the United States.
Earlier this month Capitala sold its preferred and common equity investment in KBP in exchange for total upfront cash proceeds of $17.6 million. Capitala will recognize a $9.3 million realized gain in the first quarter of 2015 in respect of this transaction. Since Capitala's investment in April 2011, the implied internal rate of return on its KBP investment is 40% with a cumulative cash-on-cash return of 2.92x.
"We are delighted to have been a financing partner for KBP," stated Joe Alala, Chairman and CEO of Capitala. "The successful exit of our largest equity investment is a great milestone for Capitala. We will continue to execute on our investment strategy of rotating a portion of our portfolio from successful equity investments to current-yielding investments and seek new opportunities to put the Company's capital to work."
About Capitala Finance Corp.
Capitala Finance Corp. is a business development company that invests primarily in traditional mezzanine, senior subordinated and unitranche debt, as well as senior and second-lien loans 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 about the Company, please visit www.CapitalaGroup.com.
About KBP Investments, LLC
KBP Investments, LLC ("KBP" or the "Company") is an Overland Park, Kansas based holding company for KBP Foods, LLC, a franchisee of over 270 KFC and Taco Bellrestaurants in 10 states throughout the Midwest and Southeastern United States. In 2014, the Franchise Times' "Restaurant 200" annual report ranked KBP Foods as the 24th largest restaurant franchisee in the United States.