UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2012
OR
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 814-00733
Triangle Capital Corporation
(Exact name of registrant as specified in its charter)
| Maryland | 06-1798488 | |
| (State or other jurisdiction of | (I.R.S. Employer | |
| incorporation or organization) | Identification No.) | |
| 3700 Glenwood Avenue, Suite 530 Raleigh, North Carolina |
27612 | |
| (Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code: (919) 719-4770
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report: N/A
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 x 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 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” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
| Large accelerated filer | ¨ | Accelerated filer | x | |||
| Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ | |||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
The number of shares outstanding of the registrant’s Common Stock on July 31, 2012 was 27,289,134.
TABLE OF CONTENTS
QUARTERLY REPORT ON FORM 10-Q
| Page | ||||||
| PART I – FINANCIAL INFORMATION | ||||||
| Item 1. | Financial Statements | |||||
| 3 | ||||||
| 4 | ||||||
| 5 | ||||||
| Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2012 and 2011 |
6 | |||||
| Unaudited Consolidated Schedule of Investments as of June 30, 2012 |
7 | |||||
| Consolidated Schedule of Investments as of December 31, 2011 |
12 | |||||
| 17 | ||||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
28 | ||||
| Item 3. | 39 | |||||
| Item 4. | 40 | |||||
| PART II – OTHER INFORMATION | ||||||
| Item 1. | Legal Proceedings | 40 | ||||
| Item 1A. | Risk Factors | 40 | ||||
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 41 | ||||
| Item 3. | Defaults Upon Senior Securities | 41 | ||||
| Item 4. | Mine Safety Disclosures | 41 | ||||
| Item 5. | Other Information | 41 | ||||
| Item 6. | Exhibits | 41 | ||||
| Signatures | 43 | |||||
| Exhibits | ||||||
2
PART I – FINANCIAL INFORMATION
Consolidated Balance Sheets
| June 30, | December 31, | |||||||
| 2012 | 2011 | |||||||
| (Unaudited) | ||||||||
| Assets |
||||||||
| Investments at fair value: |
||||||||
| Non–Control / Non–Affiliate investments (cost of $464,398,400 and $389,312,451 at June 30, 2012 and December 31, 2011, respectively) |
$ | 476,434,438 | $ | 396,502,490 | ||||
| Affiliate investments (cost of $115,106,658 and $97,751,264 at June 30, 2012 and December 31, 2011, respectively) |
116,191,443 | 103,266,298 | ||||||
| Control investments (cost of $11,413,857 and $11,278,339 at June 30, 2012 and December 31, 2011, respectively) |
5,777,993 | 7,309,787 | ||||||
|
|
|
|
|
|||||
| Total investments at fair value |
598,403,874 | 507,078,575 | ||||||
| Cash and cash equivalents |
93,727,621 | 66,868,340 | ||||||
| Interest and fees receivable |
4,447,983 | 1,883,395 | ||||||
| Prepaid expenses and other current assets |
401,771 | 623,318 | ||||||
| Deferred financing fees |
8,314,210 | 6,682,889 | ||||||
| Property and equipment, net |
55,847 | 58,304 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 705,351,306 | $ | 583,194,821 | ||||
|
|
|
|
|
|||||
| Liabilities |
||||||||
| Accounts payable and accrued liabilities |
$ | 2,719,650 | $ | 4,116,822 | ||||
| Interest payable |
3,551,367 | 3,521,932 | ||||||
| Taxes payable |
203,893 | 1,402,866 | ||||||
| Deferred income taxes |
802,079 | 628,742 | ||||||
| Borrowings under credit facility |
— | 15,000,000 | ||||||
| Senior notes |
69,000,000 | — | ||||||
| SBA-guaranteed debentures payable |
213,914,760 | 224,237,504 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
290,191,749 | 248,907,866 | ||||||
| Net Assets |
||||||||
| Common stock, $0.001 par value per share (150,000,000 shares authorized, 27,289,134 and 22,774,726 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively) |
27,289 | 22,775 | ||||||
| Additional paid-in-capital |
397,340,547 | 318,297,269 | ||||||
| Investment income in excess of distributions |
6,475,047 | 6,847,486 | ||||||
| Accumulated realized gains on investments |
4,633,796 | 1,011,649 | ||||||
| Net unrealized appreciation of investments |
6,682,878 | 8,107,776 | ||||||
|
|
|
|
|
|||||
| Total net assets |
415,159,557 | 334,286,955 | ||||||
|
|
|
|
|
|||||
| Total liabilities and net assets |
$ | 705,351,306 | $ | 583,194,821 | ||||
|
|
|
|
|
|||||
| Net asset value per share |
$ | 15.21 | $ | 14.68 | ||||
|
|
|
|
|
|||||
See accompanying notes.
3
Unaudited Consolidated Statements of Operations
| Three Months Ended |
Three Months Ended |
Six Months Ended |
Six Months Ended |
|||||||||||||
| June 30, 2012 |
June 30, 2011 |
June 30, 2012 |
June 30, 2011 |
|||||||||||||
| Investment income: |
||||||||||||||||
| Loan interest, fee and dividend income: |
||||||||||||||||
| Non–Control / Non–Affiliate investments |
$ | 15,060,897 | $ | 11,224,891 | $ | 28,024,499 | $ | 19,974,340 | ||||||||
| Affiliate investments |
2,952,805 | 1,724,555 | 5,669,954 | 3,098,798 | ||||||||||||
| Control investments |
52,218 | 888,593 | 111,991 | 1,146,861 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total loan interest, fee and dividend income |
18,065,920 | 13,838,039 | 33,806,444 | 24,219,999 | ||||||||||||
| Paid–in–kind interest income: |
||||||||||||||||
| Non–Control / Non–Affiliate investments |
2,850,412 | 1,886,506 | 5,437,679 | 3,368,326 | ||||||||||||
| Affiliate investments |
870,085 | 549,724 | 1,524,318 | 944,895 | ||||||||||||
| Control investments |
20,000 | 53,504 | 39,971 | 118,801 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total paid–in–kind interest income |
3,740,497 | 2,489,734 | 7,001,968 | 4,432,022 | ||||||||||||
| Interest income from cash and cash equivalent investments |
156,049 | 85,973 | 265,907 | 187,122 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total investment income |
21,962,466 | 16,413,746 | 41,074,319 | 28,839,143 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Expenses: |
||||||||||||||||
| Interest and other financing fees |
4,144,623 | 2,753,751 | 7,455,360 | 4,895,908 | ||||||||||||
| General and administrative expenses |
3,767,420 | 3,436,474 | 7,374,687 | 5,833,997 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total expenses |
7,912,043 | 6,190,225 | 14,830,047 | 10,729,905 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net investment income |
14,050,423 | 10,223,521 | 26,244,272 | 18,109,238 | ||||||||||||
| Net realized gain on investments—Non Control / Non–Affiliate |
2,784,108 | 827,599 | 2,784,108 | 827,599 | ||||||||||||
| Net realized gain on investments—Control |
838,039 | 12,153,170 | 838,039 | 12,153,170 | ||||||||||||
| Net unrealized depreciation of investments |
(2,046,369 | ) | (8,659,059 | ) | (1,424,898 | ) | (4,063,304 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total net gain on investments |
1,575,778 | 4,321,710 | 2,197,249 | 8,917,465 | ||||||||||||
| Loss on extinguishment of debt |
— | — | (205,043 | ) | (157,590 | ) | ||||||||||
| Income tax benefit |
— | — | 7,231 | 27,359 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase in net assets resulting from operations |
$ | 15,626,201 | $ | 14,545,231 | $ | 28,243,709 | $ | 26,896,472 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net investment income per share—basic and diluted |
$ | 0.52 | $ | 0.55 | $ | 1.00 | $ | 1.02 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase in net assets resulting from operations per share—basic and diluted |
$ | 0.57 | $ | 0.78 | $ | 1.08 | $ | 1.52 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Dividends declared per common share |
$ | 0.50 | $ | 0.44 | $ | 0.97 | $ | 0.86 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average number of shares outstanding—basic and diluted |
27,262,646 | 18,570,929 | 26,168,973 | 17,714,507 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
See accompanying notes.
4
Unaudited Consolidated Statements of Changes in Net Assets
| Investment | Accumulated | Net | ||||||||||||||||||||||||||
| Income | Realized | Unrealized | ||||||||||||||||||||||||||
| Common Stock | Additional | in Excess of | Gains | Appreciation | Total | |||||||||||||||||||||||
| Number | Par | Paid In | (Less Than) | (Losses) on | (Depreciation) | Net | ||||||||||||||||||||||
| of Shares | Value | Capital | Distributions | Investments | of Investments | Assets | ||||||||||||||||||||||
| Balance, January 1, 2011 |
14,928,987 | $ | 14,929 | $ | 183,602,755 | $ | 3,365,548 | $ | (8,244,376 | ) | $ | 1,740,303 | $ | 180,479,159 | ||||||||||||||
| Net investment income |
— | — | — | 18,109,238 | — | — | 18,109,238 | |||||||||||||||||||||
| Stock-based compensation |
— | — | 909,500 | — | — | — | 909,500 | |||||||||||||||||||||
| Net realized gain on investments |
— | — | — | — | 12,980,769 | (11,137,330 | ) | 1,843,439 | ||||||||||||||||||||
| Net unrealized gains on investments |
— | — | — | — | — | 7,074,026 | 7,074,026 | |||||||||||||||||||||
| Loss on extinguishment of debt |
— | — | — | (157,590 | ) | — | — | (157,590 | ) | |||||||||||||||||||
| Income tax benefit |
— | — | — | 27,359 | — | — | 27,359 | |||||||||||||||||||||
| Dividends/distributions declared |
117,142 | 117 | 2,109,433 | (15,944,136 | ) | — | — | (13,834,586 | ) | |||||||||||||||||||
| Public offering of common stock |
3,450,000 | 3,450 | 62,989,646 | — | — | — | 62,993,096 | |||||||||||||||||||||
| Issuance of restricted stock |
161,174 | 161 | (161 | ) | — | — | — | — | ||||||||||||||||||||
| Common stock withheld for payroll taxes upon vesting of restricted stock |
(32,065 | ) | (32 | ) | (643,276 | ) | — | — | — | (643,308 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Balance, June 30, 2011 |
18,625,238 | $ | 18,625 | $ | 248,967,897 | $ | 5,400,419 | $ | 4,736,393 | $ | (2,323,001 | ) | $ | 256,800,333 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Investment | Accumulated | Net | ||||||||||||||||||||||||||
| Income | Realized | Unrealized | ||||||||||||||||||||||||||
| Common Stock | Additional | in Excess of | Gains | Appreciation | Total | |||||||||||||||||||||||
| Number | Par | Paid In | (Less Than) | (Losses) on | (Depreciation) | Net | ||||||||||||||||||||||
| of Shares | Value | Capital | Distributions | Investments | of Investments | Assets | ||||||||||||||||||||||
| Balance, January 1, 2012 |
22,774,726 | $ | 22,775 | $ | 318,297,269 | $ | 6,847,486 | $ | 1,011,649 | $ | 8,107,776 | $ | 334,286,955 | |||||||||||||||
| Net investment income |
— | — | — | 26,244,272 | — | — | 26,244,272 | |||||||||||||||||||||
| Stock-based compensation |
— | — | 1,372,096 | — | — | — | 1,372,096 | |||||||||||||||||||||
| Net realized gain on investments |
— | — | — | — | 3,622,147 | (3,062,895 | ) | 559,252 | ||||||||||||||||||||
| Net unrealized gains on investments |
— | — | — | — | — | 1,637,997 | 1,637,997 | |||||||||||||||||||||
| Loss on extinguishment of debt |
— | — | — | (205,043 | ) | — | — | (205,043 | ) | |||||||||||||||||||
| Income tax benefit |
— | — | — | 7,231 | — | — | 7,231 | |||||||||||||||||||||
| Dividends/distributions declared |
81,861 | 81 | 1,664,085 | (26,418,899 | ) | — | — | (24,754,733 | ) | |||||||||||||||||||
| Public offering of common stock |
4,255,000 | 4,255 | 77,118,719 | — | — | — | 77,122,974 | |||||||||||||||||||||
| Issuance of restricted stock |
235,086 | 236 | (236 | ) | — | — | — | — | ||||||||||||||||||||
| Common stock withheld for payroll taxes upon vesting of restricted stock |
(57,539 | ) | (58 | ) | (1,111,386 | ) | — | — | — | (1,111,444 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Balance, June 30, 2012 |
27,289,134 | $ | 27,289 | $ | 397,340,547 | $ | 6,475,047 | $ | 4,633,796 | $ | 6,682,878 | $ | 415,159,557 | |||||||||||||||
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|
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|
|||||||||||||||
See accompanying notes.
5
Unaudited Consolidated Statements of Cash Flows
| Six
Months Ended June 30, 2012 |
Six
Months Ended June 30, 2011 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net increase in net assets resulting from operations |
$ | 28,243,709 | $ | 26,896,472 | ||||
| Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: |
||||||||
| Purchases of portfolio investments |
(156,571,355 | ) | (136,291,889 | ) | ||||
| Repayments received/sales of portfolio investments |
71,439,853 | 61,522,270 | ||||||
| Loan origination and other fees received |
2,309,229 | 2,689,172 | ||||||
| Net realized (gain) loss on investments |
(3,622,147 | ) | (12,980,769 | ) | ||||
| Net unrealized depreciation of investments |
1,251,562 | 3,919,574 | ||||||
| Deferred income taxes |
173,337 | 143,729 | ||||||
| Payment–in–kind interest accrued, net of payments received |
(3,765,725 | ) | (1,037,758 | ) | ||||
| Amortization of deferred financing fees |
504,619 | 364,555 | ||||||
| Loss on extinguishment of debt |
205,043 | 157,590 | ||||||
| Accretion of loan origination and other fees |
(1,554,726 | ) | (711,355 | ) | ||||
| Accretion of loan discounts |
(811,990 | ) | (518,337 | ) | ||||
| Accretion of discount on SBA-guaranteed debentures payable |
87,256 | 85,068 | ||||||
| Depreciation expense |
15,811 | 14,477 | ||||||
| Stock-based compensation |
1,372,096 | 909,500 | ||||||
| Changes in operating assets and liabilities: |
||||||||
| Interest and fees receivable |
(2,564,588 | ) | (712,007 | ) | ||||
| Prepaid expenses |
221,547 | (435,754 | ) | |||||
| Accounts payable and accrued liabilities |
(1,397,172 | ) | 4,700 | |||||
| Interest payable |
29,435 | 723,850 | ||||||
| Taxes payable |
(1,198,973 | ) | (191,672 | ) | ||||
|
|
|
|
|
|||||
| Net cash used in operating activities |
(65,633,179 | ) | (55,448,584 | ) | ||||
|
|
|
|
|
|||||
| Cash flows from investing activities: |
||||||||
| Purchases of property and equipment |
(13,354 | ) | (18,115 | ) | ||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(13,354 | ) | (18,115 | ) | ||||
|
|
|
|
|
|||||
| Cash flows from financing activities: |
||||||||
| Borrowings under SBA-guaranteed debentures payable |
— | 31,100,000 | ||||||
| Repayments of SBA-guaranteed debentures payable |
(10,410,000 | ) | (9,500,000 | ) | ||||
| Repayments of credit facility |
(15,000,000 | ) | — | |||||
| Proceeds from senior notes |
69,000,000 | — | ||||||
| Financing fees paid |
(2,340,983 | ) | (1,226,176 | ) | ||||
| Proceeds from public stock offerings, net of expenses |
77,122,974 | 62,993,096 | ||||||
| Common stock withheld for payroll taxes upon vesting of restricted stock |
(1,111,444 | ) | (643,308 | ) | ||||
| Cash dividends paid |
(24,754,733 | ) | (13,834,586 | ) | ||||
|
|
|
|
|
|||||
| Net cash provided by financing activities |
92,505,814 | 68,889,026 | ||||||
|
|
|
|
|
|||||
| Net increase in cash and cash equivalents |
26,859,281 | 13,422,327 | ||||||
| Cash and cash equivalents, beginning of period |
66,868,340 | 54,820,222 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents, end of period |
$ | 93,727,621 | $ | 68,242,549 | ||||
|
|
|
|
|
|||||
| Supplemental disclosure of cash flow information: |
||||||||
| Cash paid for interest |
$ | 6,671,706 | $ | 3,722,435 | ||||
|
|
|
|
|
|||||
| Summary of non-cash financing transactions: |
||||||||
| Dividends paid through DRIP share issuances |
$ | 1,664,166 | $ | 2,109,550 | ||||
|
|
|
|
|
|||||
See accompanying notes.
6
Unaudited Consolidated Schedule of Investments
June 30, 2012
| Portfolio Company |
Industry |
Type of Investment(1)(2) |
Principal Amount |
Cost | Fair Value(3) |
|||||||||||
| Non–Control / Non–Affiliate Investments: |
||||||||||||||||
| Ambient Air Corporation (“AA”) and Peaden-Hobbs Mechanical, LLC (“PHM”) (1%)* |
Specialty Trade Contractors |
Subordinated Note-AA (15% Cash, 3% PIK, Due 06/13) | $ | 4,139,092 | $ | 4,122,177 | $ | 4,122,177 | ||||||||
| Subordinated Note-PHM (12% Cash, Due 09/12) | 12,857 | 12,857 | 12,857 | |||||||||||||
| Common Stock-PHM (128,571 shares) | 128,571 | 128,571 | ||||||||||||||
| Common Stock Warrants-AA (455 shares) | 142,361 | 752,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 4,151,949 | 4,405,966 | 5,015,605 | ||||||||||||||
| Ann’s House of Nuts, Inc. (2%)* |
Trail Mixes and Nut Producers |
Subordinated Note (12% Cash, 1% PIK, Due 11/17) | 7,116,686 | 6,775,285 | 6,775,285 | |||||||||||
| Preferred A Units (22,368 units) | 2,124,957 | 2,258,000 | ||||||||||||||
| Preferred B Units (10,380 units) | 986,059 | 1,286,000 | ||||||||||||||
| Common Units (190,935 units) | 150,000 | — | ||||||||||||||
| Common Stock Warrants (14,558 shares) | 14,558 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 7,116,686 | 10,050,859 | 10,319,285 | ||||||||||||||
| Aramsco, Inc. (0%) |
Environmental Emergency Preparedness Products Distributor |
Subordinated Note (12% Cash, 2% PIK, Due 03/14) | |
1,693,311 |
|
|
1,591,113 |
|
|
1,591,113 |
| |||||
|
|
|
|
|
|
|
|||||||||||
| 1,693,311 | 1,591,113 | 1,591,113 | ||||||||||||||
| Assurance Operations Corporation (0%)* |
Metal Fabrication |
Common Stock (517 shares) | 516,867 | 822,000 | ||||||||||||
|
|
|
|
|
|||||||||||||
| 516,867 | 822,000 | |||||||||||||||
| BioSan Laboratories, Inc. (1%)* |
Nutritional Supplement Manufacturing and Distribution |
Subordinated Note (12% Cash, 3.8% PIK, Due 10/16) | |
5,376,800 |
|
|
5,287,480 |
|
|
5,287,480 |
| |||||
|
|
|
|
|
|
|
|||||||||||
| 5,376,800 | 5,287,480 | 5,287,480 | ||||||||||||||
| Botanical Laboratories, Inc. (2%)* |
Nutritional Supplement Manufacturing and Distribution |
Senior Notes (14% Cash, 1% PIK, Due 02/15) | 9,781,152 | 9,314,304 | 9,314,304 | |||||||||||
| Common Unit Warrants (998,680 units) | 474,600 | — | ||||||||||||||
|
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|
|
|
|
|||||||||||
| 9,781,152 | 9,788,904 | 9,314,304 | ||||||||||||||
| Capital Contractors, Inc. (2%)* |
Janitorial and Facilities Maintenance Services |
Subordinated Notes (12% Cash, 2% PIK, Due 12/15) |
|
9,278,490 |
|
|
8,768,257 |
|
|
8,768,257 |
| |||||
| Common Stock Warrants (20 shares) | 492,000 | 463,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 9,278,490 | 9,260,257 | 9,231,257 | ||||||||||||||
| Carolina Beverage Group, LLC (4%)* |
Beverage Manufacturing and Packaging |
Subordinated Note (12% Cash, 4% PIK, Due 02/16) | 13,394,977 | 13,210,693 | 13,210,693 | |||||||||||
| Class A Units (11,974 units) | 1,077,615 | 1,300,000 | ||||||||||||||
| Class B Units (11,974 units) | 119,735 | 54,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 13,394,977 | 14,408,043 | 14,564,693 | ||||||||||||||
| Chromaflo Technologies, LLC (4%)* |
Colorant Manufacturer and Distributor |
Subordinated Note (12% Cash, 2% PIK, Due 10/17) | 16,299,853 | 15,985,614 | 15,985,614 | |||||||||||
| Preferred A Units (22,561 units) | 2,256,098 | 2,256,098 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 16,299,853 | 18,241,712 | 18,241,712 | ||||||||||||||
| Continental Anesthesia Management, LLC (2%)* |
Physicians Management Services |
Senior Note (13.5% Cash, Due 11/14) | 10,200,000 | 9,940,646 | 9,940,646 | |||||||||||
| Warrant (263 shares) | 276,100 | 28,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 10,200,000 | 10,216,746 | 9,968,646 | ||||||||||||||
| CRS Reprocessing, LLC (7%)* |
Fluid Reprocessing Services |
Subordinated Note (10% Cash, 4% PIK, Due 11/15) | 11,530,579 | 11,243,277 | 11,243,277 | |||||||||||
| Subordinated Note (10% Cash, 4% PIK, Due 11/15) | 12,716,066 | 11,315,632 | 11,315,632 | |||||||||||||
| Series C Preferred Units (26 units) | 288,342 | 478,000 | ||||||||||||||
| Common Unit Warrant (664 units) | 1,759,556 | 4,569,000 | ||||||||||||||
| Series D Preferred Units (16 units) | 107,074 | 199,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 24,246,645 | 24,713,881 | 27,804,909 | ||||||||||||||
| CV Holdings, LLC (4%)* |
Specialty Healthcare Products Manufacturer |
Subordinated Note (12% Cash, 4% PIK, Due 09/13) | 9,468,285 | 9,149,867 | 9,149,867 | |||||||||||
| Subordinated Note (12% Cash, Due 09/13) | 6,000,000 | 5,935,574 | 5,935,574 | |||||||||||||
| Royalty Rights | 874,400 | 663,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 15,468,285 | 15,959,841 | 15,748,441 | ||||||||||||||
| DLR Restaurants, LLC (3%)* |
Restaurant | Subordinated Note (12% Cash, 3% PIK, Due 03/16) | 10,823,151 | 10,630,571 | 10,630,571 | |||||||||||
| Subordinated Note (12% Cash, 4% PIK, Due 03/16) | 767,420 | 752,420 | 752,420 | |||||||||||||
| Royalty Rights | — | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 11,590,571 | 11,382,991 | 11,382,991 | ||||||||||||||
| Electronic Systems Protection, Inc. (1%)* |
Power Protection Systems Manufacturing |
Subordinated Note (12% Cash, 2% PIK, Due 12/15) | |
4,204,530 |
|
|
4,173,557 |
|
|
4,173,557 |
| |||||
| Common Stock (570 shares) | 285,000 | 337,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 4,204,530 | 4,458,557 | 4,510,557 | ||||||||||||||
7
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Schedule of Investments
June 30, 2012
| Portfolio Company |
Industry |
Type of Investment(1)(2) |
Principal Amount |
Cost | Fair Value(3) |
|||||||||||
| Frozen Specialties, Inc. (2%)* |
Frozen Foods Manufacturer | Subordinated Note (13% Cash, 5% PIK, Due 07/14) | $ | 8,695,325 | $ | 8,623,662 | $ | 8,623,662 | ||||||||
|
|
|
|
|
|
|
|||||||||||
| 8,695,325 | 8,623,662 | 8,623,662 | ||||||||||||||
| Garden Fresh Restaurant Corp. (0%)* |
Restaurant | Membership Units (5,000 units) | 500,000 | 610,000 | ||||||||||||
|
|
|
|
|
|||||||||||||
| 500,000 | 610,000 | |||||||||||||||
| Grindmaster-Cecilware Corp. (1%)* |
Food Services Equipment Manufacturer | Subordinated Note (12% Cash, 6% PIK, Due 04/16) | |
6,467,095 |
|
|
6,401,080 |
|
|
5,705,000 |
| |||||
|
|
|
|
|
|
|
|||||||||||
| 6,467,095 | 6,401,080 | 5,705,000 | ||||||||||||||
| Hatch Chile Co., LLC (1%)* |
Food Products Distributor | Senior Note (19% Cash, Due 07/15) | 4,090,909 | 4,011,469 | 4,011,469 | |||||||||||
| Subordinated Note (14% Cash, Due 07/15) | 909,091 | 790,241 | 790,241 | |||||||||||||
| Unit Purchase Warrant (5,265 units) | 149,800 | 304,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,000,000 | 4,951,510 | 5,105,710 | ||||||||||||||
| Home Physicians, LLC (“HP”) and Home Physicians Holdings, LP (“HPH”) (2%)* |
In-home Primary Care Physician Services | Subordinated Note-HP (12% Cash, 5% PIK, Due 03/16) | 10,926,259 | 10,608,777 | 7,510,000 | |||||||||||
| Subordinated Note-HPH (4% Cash, 6% PIK, Due 03/16) | 1,323,229 | 1,303,361 | — | |||||||||||||
| Senior Subordinated Note—HP (14% Cash, 2% PIK, Due 3/16) | 606,023 | 595,098 | 595,098 | |||||||||||||
| Royalty Rights | — | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 12,855,511 | 12,507,236 | 8,105,098 | ||||||||||||||
| Infrastructure Corporation of America, Inc. (3%)* |
Roadway Maintenance, Repair and Engineering Services | Subordinated Note (12% Cash, 1% PIK, Due 10/15) | 10,933,930 | 10,041,278 | 10,041,278 | |||||||||||
| Common Stock Purchase Warrant (199,526 shares) | 980,000 | 1,123,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 10,933,930 | 11,021,278 | 11,164,278 | ||||||||||||||
| Inland Pipe Rehabilitation Holding Company LLC |
Cleaning and Repair Services | Subordinated Note (13% Cash, 2.5% PIK, Due 12/16) | 20,534,567 | 20,274,655 | 20,274,665 | |||||||||||
| Membership Interest Purchase Warrant (3.0%) | 853,500 | 2,115,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 20,534,567 | 21,128,165 | 22,389,665 | ||||||||||||||
| Library Systems & Services, LLC (1%)* |
Municipal Business Services | Subordinated Note (12.5% Cash, 4.5% PIK, Due 06/15) | 5,369,439 | 5,263,630 | 5,263,630 | |||||||||||
| Common Stock Warrants (112 shares) | 58,995 | 954,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,369,439 | 5,322,625 | 6,217,630 | ||||||||||||||
| Magpul Industries Corp. (4%) |
Firearm Accessories Manufacturer and Distributor | Subordinated Note (12% Cash, 3% PIK, Due 03/17) | 13,300,000 | 13,060,924 | 13,060,924 | |||||||||||
| Preferred Units (1,470 units) | 1,470,000 | 1,637,000 | ||||||||||||||
| Common Units (30,000 units) | 30,000 | 2,442,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 13,300,000 | 14,560,924 | 17,139,924 | ||||||||||||||
| Media Storm, LLC (2%)* |
Marketing Services | Subordinated Note (12% Cash, 2% PIK, Due 10/17) | 7,976,696 | 7,899,327 | 7,899,327 | |||||||||||
| Membership Units (1,216,204 units) | 1,120,533 | 1,187,001 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 7,976,696 | 9,019,860 | 9,086,328 | ||||||||||||||
| Media Temple, Inc. (4%)* |
Web Hosting Services | Subordinated Note (12% Cash, 3% PIK, Due 04/15) | 8,800,000 | 8,676,860 | 8,676,860 | |||||||||||
| Convertible Note (8% Cash, 6% PIK, Due 04/15) | 3,200,000 | 2,836,093 | 5,446,000 | |||||||||||||
| Common Stock Purchase Warrant (28,000 shares) | 536,000 | 2,382,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 12,000,000 | 12,048,953 | 16,504,860 | ||||||||||||||
| Minco Technology Labs, LLC (1%)* |
Semiconductor Distribution | Subordinated Note (13% Cash, 3.25% PIK, Due 05/16) | 5,359,414 | 5,265,983 | 5,265,983 | |||||||||||
| Class A Units (5,000 units) | 500,000 | 95,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,359,414 | 5,765,983 | 5,360,983 | ||||||||||||||
| National Investment Managers Inc. (3%)* |
Retirement Plan Administrator | Subordinated Note (12% Cash, 5% PIK, Due 09/16) | 12,000,730 | 11,769,529 | 11,769,529 | |||||||||||
| Preferred A Units (90,000 units) | 900,000 | 679,000 | ||||||||||||||
| Common Units (10,000 units) | 100,000 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 12,000,730 | 12,769,529 | 12,448,529 | ||||||||||||||
| Pomeroy IT Solutions (2%)* |
Information Technology Outsourcing Services | Subordinated Notes (13% Cash, 2% PIK, Due 02/16) | 10,284,402 | 10,080,704 | 10,080,704 | |||||||||||
|
|
|
|
|
|
|
|||||||||||
| 10,284,402 | 10,080,704 | 10,080,704 | ||||||||||||||
| PowerDirect Marketing, LLC (2%)* |
Marketing Services | Subordinated Note (13% Cash, 2% PIK, Due 05/16) | 7,682,107 | 7,025,992 | 7,025,992 | |||||||||||
| Common Unit Purchase Warrants | 590,200 | 975,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 7,682,107 | 7,616,192 | 8,000,992 | ||||||||||||||
8
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Schedule of Investments
June 30, 2012
| Portfolio Company |
Industry |
Type of Investment(1)(2) |
Principal Amount |
Cost | Fair Value(3) |
|||||||||||
| ROM Acquisition Corporation (2%)* |
Military and Industrial Vehicles Equipment Manufacturing | Subordinated Note (12% Cash, 3% PIK, Due 3/17)
|
$ |
8,566,045 |
|
$ |
8,484,208 |
|
$ |
8,484,208 |
| |||||
|
|
|
|
|
|
|
|||||||||||
| 8,566,045 | 8,484,208 | 8,484,208 | ||||||||||||||
| Sheplers, Inc. (3%)* |
Western Apparel Retailer | Subordinated Note (13.15% Cash, Due 12/16) | 8,750,000 | 8,547,341 | 8,547,341 | |||||||||||
| Subordinated Note (10% Cash, 7% PIK, Due 12/17) | 3,890,259 | 3,821,204 | 3,821,204 | |||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 12,640,259 | 12,368,545 | 12,368,545 | ||||||||||||||
| SRC, Inc. (1%)* |
Specialty Chemical Manufacturer | Subordinated Notes (12% Cash, 2% PIK, Due 09/14) | 5,963,832 | 5,759,375 | 5,759,375 | |||||||||||
| Common Stock Purchase Warrants | 123,800 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,963,832 | 5,883,175 | 5,759,375 | ||||||||||||||
| Stella Environmental Services, LLC (1%)* |
Waste Transfer Stations | Subordinated Notes (12% Cash, 3% PIK, Due 2/17) | 6,324,947 | 6,185,343 | 6,185,343 | |||||||||||
| Common Stock Purchase Warrants | 20,000 | 20,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 6,324,947 | 6,205,343 | 6,205,343 | ||||||||||||||
| Syrgis Holdings, Inc. (0%)* |
Specialty Chemical Manufacturer | Class C Units (2,114 units)
|
602,016 | 1,290,000 | ||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 602,016 | 1,290,000 | |||||||||||||||
| The Krystal Company (3%)* |
Quick Serve Restaurants | Subordinated Note (12% Cash, 3% PIK, Due 6/17) | 12,324,964 | 12,089,067 | 12,089,067 | |||||||||||
| Class A Units of Limited Partnership (2,000 units) | 2,000,000 | 2,000,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 12,324,964 | 14,089,067 | 14,089,067 | ||||||||||||||
| TMR Automotive Service Supply, LLC (1%)* |
Automotive Supplies | Subordinated Note (12% Cash, 1% PIK, Due 03/16) | 4,750,000 | 4,513,287 | 4,513,287 | |||||||||||
| Unit Purchase Warrant (329,518 units) | 195,000 | 337,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 4,750,000 | 4,708,287 | 4,850,287 | ||||||||||||||
| Tomich Brothers, LLC (2%)* |
Squid and Wetfish Processor and Distributor | Subordinated Note (12% Cash, 3% PIK, Due 04/16) | 7,037,968 | 6,904,914 | 6,904,914 | |||||||||||
| Royalty Rights | — | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 7,037,968 | 6,904,914 | 6,904,914 | ||||||||||||||
| Top Knobs USA, Inc. (3%)* |
Hardware Designer and Distributor | Subordinated Note (12% Cash, 4.5% PIK, Due 05/17) | 10,606,238 | 10,467,794 | 10,467,794 | |||||||||||
| Common Stock (26,593 shares) | 750,000 | 881,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 10,606,238 | 11,217,794 | 11,348,794 | ||||||||||||||
| Trinity Consultants Holdings, Inc. (2%)* |
Air Quality Consulting Services | Subordinated Note (12% Cash, 2.5% PIK, Due 11/17) | 7,308,190 | 7,172,681 | 7,172681 | |||||||||||
| Series A Preferred Stock (10,000 units) | 950,000 | 1,075,000 | ||||||||||||||
| Common Stock (55,556 units) | 50,000 | 311,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 7,308,190 | 8,172,681 | 8,558,681 | ||||||||||||||
| TrustHouse Services Group, Inc. (6%)* |
Food Management Services | Subordinated Note (12% Cash, 2.25% PIK, Due 06/19) | 25,045,312 | 24,747,440 | 24,747,440 | |||||||||||
| Class A Units (1,557 units) | 512,124 | 1,291,000 | ||||||||||||||
| Class B Units (82 units) | 26,954 | 51,000 | ||||||||||||||
| Class E Units (838 units) | 750,406 | 739,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 25,045,312 | 26,036,924 | 26,828,440 | ||||||||||||||
| Tulsa Inspection Resources, Inc. (2%)* |
Pipeline Inspection Services | Subordinated Note (14%-17.5% Cash, Due 03/14) | 5,810,588 | 5,620,603 | 5,620,603 | |||||||||||
| Common Units (2 units) | 407,000 | 518,000 | ||||||||||||||
| Common Stock Warrants (8 shares) | 321,000 | 1,987,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,810,588 | 6,348,603 | 8,125,603 | ||||||||||||||
| Twin-Star International, Inc. (1%)* |
Consumer Home Furnishings Manufacturer | Subordinated Note (12% Cash, 1% PIK, Due 04/14) | 4,500,000 | 4,483,581 | 4,483,581 | |||||||||||
| Senior Note (4.5%, Due 04/13) | 1,023,359 | 1,023,359 | 1,023,359 | |||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,523,359 | 5,506,940 | 5,506,940 | ||||||||||||||
| United Biologics, LLC (3%)* |
Allergy Immunotherapy | Subordinated Note (12% Cash, 2% PIK, Due 03/17) | 10,065,717 | 9,066,234 | 9,066,234 | |||||||||||
| Class A Common Stock (177,935 shares) | 1,999,989 | 1,999,989 | ||||||||||||||
| Class A & Class B Unit Purchase Warrants | 838,117 | 838,117 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 10,065,717 | 11,904,340 | 11,904,340 | ||||||||||||||
| Wholesale Floors, Inc. (1%)* |
Commercial Services | Subordinated Note (12.5% Cash, 3.5% PIK, Due 06/14) | 3,754,094 | 3,683,972 | 3,683,972 | |||||||||||
| Membership Interest Purchase Warrant (4.0%) | 132,800 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 3,754,094 | 3,816,772 | 3,683,972 | ||||||||||||||
9
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Schedule of Investments
June 30, 2012
| Portfolio Company |
Industry |
Type of Investment(1)(2) |
Principal Amount |
Cost | Fair Value(3) |
|||||||||||
| Workforce Software, LLC (2%)* |
Software Provider | Subordinated Note (11% Cash, 3% PIK, Due 11/16) | $ | 7,000,000 | $ | 6,137,547 | $ | 6,137,547 | ||||||||
| Class B Preferred Units (1,020,000 units) | 1,020,000 | 1,080,000 | ||||||||||||||
| Common Unit Purchase Warrants (2,224,561 units) | 782,300 | 1,354,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 7,000,000 | 7,939,847 | 8,571,547 | ||||||||||||||
| WSO Holdings, LP (5%)* |
Organic/Fair Trade Sugar, Syrup, Nectar and Honey Producer | Subordinated Note (12% Cash, 2% PIK, 10/17) |
|
20,095,556 |
|
|
19,805,380 |
|
|
19,805,380 |
| |||||
| Common Points (3,000 points) | 3,000,000 | 3,000,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 20,095,556 | 22,805,380 | 22,805,380 | ||||||||||||||
| Xchange Technology Group, LLC (1%)* |
Used and Refurbished IT Asset Supplier | Subordinated (12% Cash, 6% PIK, 06/15) | 6,024,000 | 5,277,000 | 5,277,000 | |||||||||||
| Royalty Rights | 627,000 | 627,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 6,024,000 | 5,904,000 | 5,904,000 | ||||||||||||||
| Yellowstone Landscape Group, Inc. (3%)* |
Landscaping Services | Subordinated Note (12% Cash, 3% PIK, Due 04/14) | 13,009,187 | 12,898,646 | 12,898,646 | |||||||||||
|
|
|
|
|
|
|
|||||||||||
| 13,009,187 | 12,898,646 | 12,898,646 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| Subtotal Non–Control / Non–Affiliate Investments |
443,112,721 | 464,398,400 | 476,434,438 | |||||||||||||
| Affiliate Investments: |
||||||||||||||||
| American De-Rosa Lamparts, LLC and Hallmark Lighting (1%)* |
Wholesale and Distribution | Subordinated Note (12% Cash, 6% PIK, Due 10/13) | 6,242,854 | 5,431,468 | 5,431,468 | |||||||||||
| Membership Units (6,516 units) | 620,653 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 6,242,854 | 6,052,121 | 5,431,468 | ||||||||||||||
| AP Services, Inc. (2%)* |
Fluid Sealing Supplies and Services | Subordinated Note (12% Cash, 2% PIK, Due 09/15) | 4,395,730 | 4,312,809 | 4,312,809 | |||||||||||
| Class A Units (933 units) | 933,333 | 1,749,000 | ||||||||||||||
| Class B Units (496 units) | — | 431,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 4,395,730 | 5,246,142 | 6,492,809 | ||||||||||||||
| Asset Point, LLC (2%)* |
Asset Management Software Provider | Senior Note (12% Cash, 4% PIK, Due 03/13) | 6,178,429 | 6,159,414 | 6,159,414 | |||||||||||
| Senior Note (12% Cash, 2% PIK, Due 07/15) | 623,843 | 623,843 | 562,000 | |||||||||||||
| Subordinated Note (7% Cash, Due 03/13) | 941,798 | 941,798 | 859,000 | |||||||||||||
| Membership Units (1,000,000 units) | 8,203 | 389,000 | ||||||||||||||
| Options to Purchase Membership Units (342,407 units) | 500,000 | 176,000 | ||||||||||||||
| Membership Unit Warrants (356,506 units) | — | 2,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 7,744,070 | 8,233,258 | 8,147,414 | ||||||||||||||
| Axxiom Manufacturing, Inc. (0%)* |
Industrial Equipment Manufacturer |
Common Stock (136,400 shares) | 200,000 | 1,435,000 | ||||||||||||
| Common Stock Warrant (4,000 shares) | — | 42,000 | ||||||||||||||
|
|
|
|
|
|||||||||||||
| 200,000 | 1,477,000 | |||||||||||||||
| Brantley Transportation, LLC (“Brantley Transportation”) and Pine Street Holdings, LLC (“Pine Street”) (4) (1%)* |
Oil and Gas Services | Subordinated Note—Brantley Transportation (14% Cash, 5% PIK, Due 12/12) | 4,048,471 | 4,031,795 | 4,031,795 | |||||||||||
| Common Unit Warrants—Brantley Transportation (4,560 common units) | 33,600 | 699,000 | ||||||||||||||
| Preferred Units—Pine Street (200 units) | 200,000 | 416,000 | ||||||||||||||
| Common Unit Warrants—Pine Street (2,220 units) | — | 199,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 4,048,471 | 4,265,395 | 5,345,795 | ||||||||||||||
| Captek Softgel International, Inc. (2%)* |
Nutraceutical Manufacturer | Subordinated Note (12% Cash, 4% PIK, Due 08/16) | 8,445,914 | 8,313,732 | 8,313,732 | |||||||||||
| Class A Units (80,000 units) | 800,000 | 1,185,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 8,445,914 | 9,113,732 | 9,498,732 | ||||||||||||||
| CIS Secure Computing, Inc. (2%)* |
Secure Communications and Computing Solutions Provider |
Subordinated Note (12% Cash, 3% PIK, Due 06/17) |
|
|
|
|
|
|
|
|
| |||||
| Common Stock (84 shares) | 502,320 | 502,320 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 10,007,500 | 10,309,820 | 10,309,820 | ||||||||||||||
| Dyson Corporation (1%)* |
Custom Forging and Fastener Supplies | Class A Units (1,000,000 units) | 1,000,000 | 4,182,000 | ||||||||||||
|
|
|
|
|
|||||||||||||
| 1,000,000 | 4,182,000 | |||||||||||||||
| Equisales, LLC (0%)* |
Energy Products and Services |
Subordinated Note (6.5% Cash, 10% PIK, Due 07/12) | 3,277,733 | 3,157,043 | 994,000 | |||||||||||
| Class A Units (500,000 units) | 480,900 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 3,277,733 | 3,637,943 | 994,000 | ||||||||||||||
10
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Schedule of Investments
June 30, 2012
| Portfolio Company |
Industry |
Type of Investment(1)(2) |
Principal Amount |
Cost | Fair Value(3) |
|||||||||||
| Fischbein Partners, LLC (3%)* |
Packaging and Materials Handling Equipment Manufacturer | Subordinated Note (12% Cash, 2% PIK, Due 10/16) | $ |
6,825,129 |
|
$ |
6,714,986 |
|
$ |
6,714,986 |
| |||||
| Class A Units (1,750,000 units) | 417,088 | 3,983,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 6,825,129 | 7,132,074 | 10,697,986 | ||||||||||||||
| Main Street Gourmet, LLC (1%)* |
Baked Goods Provider | Subordinated Notes (12% Cash, 4.5% PIK, Due 10/16) | 4,230,118 | 4,164,027 | 4,164,027 | |||||||||||
| Jr. Subordinated Notes (8% Cash, 2% PIK, Due 04/17) | 1,025,251 | 1,008,673 | 742,000 | |||||||||||||
| Preferred Units (233 units) | 211,867 | — | ||||||||||||||
| Common B Units (3,000 units) | 23,140 | — | ||||||||||||||
| Common A Units (1,652 units) | 14,993 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,255,369 | 5,422,700 | 4,906,027 | ||||||||||||||
| Plantation Products, LLC (5%)* |
Seed Manufacturing | Subordinated Notes (10.5% Cash, 7% PIK, Due 11/17) | 18,631,525 | 18,416,826 | 18,416,826 | |||||||||||
| Preferred Units (4,312 units) | 4,312,000 | 4,312,000 | ||||||||||||||
| Common Units (352,000 units) | 88,000 | 88,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 18,631,525 | 22,816,826 | 22,816,826 | ||||||||||||||
| QC Holdings, Inc. (0%)* |
Lab Testing Services | Common Stock (5,594 shares) | 563,602 | 35,000 | ||||||||||||
|
|
|
|
|
|||||||||||||
| 563,602 | 35,000 | |||||||||||||||
| Technology Crops International (2%)* |
Supply Chain Management Services | Subordinated Note (12% Cash, 5% PIK, Due 03/15) | 5,753,669 | 5,695,610 | 5,695,610 | |||||||||||
| Common Units (50 units) | 500,000 | 571,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,753,669 | 6,195,610 | 6,266,610 | ||||||||||||||
| Venture Technology Groups, Inc. (1%)* |
Fluid and Gas Handling Products Distributor | Subordinated Note (12.5% Cash, 4% PIK, Due 09/16) | 5,555,646 | 5,460,370 | 3,347,000 | |||||||||||
| Class A Units (1,000,000 units) | 1,000,000 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,555,646 | 6,460,370 | 3,347,000 | ||||||||||||||
| Waste Recyclers Holdings, LLC (1%)* |
Environmental and Facilities Services | Class A Preferred Units (280 units) | 2,251,100 | — | ||||||||||||
| Class B Preferred Units (985,372 units) | 3,304,218 | 3,223,000 | ||||||||||||||
| Class C Preferred Units (1,444,475 units) | 246,598 | 616,000 | ||||||||||||||
| Common Unit Purchase Warrant (1,170,083 units) | 748,900 | — | ||||||||||||||
| Common Units (153,219 units) | 180,783 | — | ||||||||||||||
|
|
|
|
|
|||||||||||||
| 6,731,599 | 3,839,000 | |||||||||||||||
| Wythe Will Tzetzo, LLC (3%)* |
Confectionary Goods Distributor | Subordinated Notes (13% Cash, Due 10/16) | 10,357,475 | 9,923,956 | 9,923,956 | |||||||||||
| Series A Preferred Units (74,764 units) | 1,500,000 | 2,029,000 | ||||||||||||||
| Common Unit Purchase Warrants (25,065 units) | 301,510 | 451,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 10,357,475 | 11,725,466 | 12,403,956 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| Subtotal Affiliate Investments |
96,541,085 | 115,106,658 | 116,191,443 | |||||||||||||
| Control Investments: |
||||||||||||||||
| FCL Graphics, Inc. (“FCL”) and FCL Holding SPV, LLC (“SPV”) (1%)* |
Commercial Printing Services | Senior Note—FCL (5.0% Cash, Due 9/16) | 1,405,360 | 1,405,360 | 1,405,360 | |||||||||||
| Senior Note—FCL (8.0% Cash, 2% PIK, Due 9/16) | 1,159,491 | 1,158,004 | 980,000 | |||||||||||||
| Senior Note—SPV (2.5% Cash, 6% PIK, Due 9/16) | 978,644 | 978,644 | 382,000 | |||||||||||||
| Members Interests—SPV (299,875 units) | — | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 3,543,495 | 3,542,008 | 2,767,360 | ||||||||||||||
| Fire Sprinkler Systems, Inc. (0%)* |
Specialty Trade Contractors | Subordinated Notes (2% PIK, Due 04/12) | 3,491,422 | 2,955,028 | 133,000 | |||||||||||
| Common Stock (2,978 shares) | 294,624 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 3,491,422 | 3,249,652 | 133,000 | ||||||||||||||
| Fischbein, LLC (0%)* |
Packaging and Materials Handling Equipment Manufacturer | Class A-1 Common Units (501,984 units) | 29,575 | 141,512 | ||||||||||||
| Class A Common Units (3,839,068 units) | 226,182 | 927,121 | ||||||||||||||
|
|
|
|
|
|||||||||||||
| 255,757 | 1,068,633 | |||||||||||||||
| Gerli & Company (0%)* |
Specialty Woven Fabrics Manufacturer | Subordinated Note (13% Cash, Due 03/15) | 250,000 | 250,000 | 250,000 | |||||||||||
| Subordinated Note (8.5% Cash, Due 03/15) | 3,338,880 | 3,000,000 | 1,559,000 | |||||||||||||
| Class A Preferred Shares (1,211 shares) | 855,000 | — | ||||||||||||||
| Class C Preferred Shares (744 shares) | — | — | ||||||||||||||
| Class E Preferred Shares (400 shares) | 161,440 | — | ||||||||||||||
| Common Stock (300 shares) | 100,000 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 3,588,880 | 4,366,440 | 1,809,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| Subtotal Control Investments |
10,623,797 | 11,413,857 | 5,777,993 | |||||||||||||
|
|
|
|
|
|
|
|||||||||||
| Total Investments, June 30, 2012 (144%)* |
$ | 550,277,603 | $ | 590,918,915 | $ | 598,403,874 | ||||||||||
|
|
|
|
|
|
|
|||||||||||
| * | Value as a percent of net assets |
| (1) | All debt investments are income producing. Common stock, preferred stock and all warrants are non–income producing. |
| (2) | Disclosures of interest rates on notes include cash interest rates and payment–in–kind (“PIK”) interest rates. |
| (3) | All investments are restricted as to resale and were valued at fair value as determined in good faith by the Board of Directors. |
| (4) | Pine Street Holdings, LLC is the majority owner of Brantley Transportation, LLC and its sole business purpose is its ownership of Brantley Transportation, LLC. |
See accompanying notes.
11
Consolidated Schedule of Investments
December 31, 2011
| Portfolio Company |
Industry |
Type of Investment(1)(2) |
Principal Amount |
Cost | Fair Value(3) |
|||||||||||
| Non–Control / Non–Affiliate Investments: |
||||||||||||||||
| Ambient Air Corporation (“AA”) and Peaden-Hobbs Mechanical, LLC (“PHM”) (1%)* |
Specialty Trade Contractors | Subordinated Note-AA (15% Cash, 3% PIK, Due 06/13) | $ | 4,127,773 | $ | 4,103,291 | $ | 4,103,291 | ||||||||
| Subordinated Note-PHM (12% Cash, Due 09/12) | 12,857 | 12,857 | 12,857 | |||||||||||||
| Common Stock-PHM (128,571 shares) | 128,571 | 128,571 | ||||||||||||||
| Common Stock Warrants-AA (455 shares) | 142,361 | 760,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 4,140,630 | 4,387,080 | 5,004,719 | ||||||||||||||
| Ann’s House of Nuts, Inc. (3%)* |
Trail Mixes and Nut Producers | Subordinated Note (12% Cash, 1% PIK, Due 11/17) | 7,080,843 | 6,716,662 | 6,716,662 | |||||||||||
| Preferred A Units (22,368 units) | 2,124,957 | 2,407,000 | ||||||||||||||
| Preferred B Units (10,380 units) | 986,059 | 1,204,000 | ||||||||||||||
| Common Units (190,935 units) | 150,000 | — | ||||||||||||||
| Common Stock Warrants (14,558 shares) | 14,558 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 7,080,843 | 9,992,236 | 10,327,662 | ||||||||||||||
| Aramsco, Inc. (1%) |
Environmental | Subordinated Note (12% Cash, 2% PIK, Due | ||||||||||||||
| Emergency Preparedness Products Distributor | 03/14) | 1,800,997 | 1,673,278 | 1,673,278 | ||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 1,800,997 | 1,673,278 | 1,673,278 | ||||||||||||||
| Assurance Operations Corporation (0%)* |
Metal Fabrication | Common Stock (517 shares) | 516,867 | 773,000 | ||||||||||||
|
|
|
|
|
|||||||||||||
| 516,867 | 773,000 | |||||||||||||||
| BioSan Laboratories, Inc. (2%)* |
Nutritional | Subordinated Note (12% Cash, 3.8% PIK, Due | ||||||||||||||
| Supplement Manufacturing and Distribution | 10/16) | 5,276,296 | 5,179,676 | 5,179,676 | ||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,276,296 | 5,179,676 | 5,179,676 | ||||||||||||||
| Botanical Laboratories, Inc. (3%)* |
Nutritional | Senior Notes (14% Cash, 1% PIK, Due 02/15) | 10,114,528 | 9,580,196 | 9,122,000 | |||||||||||
| Supplement | Common Unit Warrants (998,680 units) | 474,600 | — | |||||||||||||
|
|
|
|
|
|
|
|||||||||||
| Manufacturing | 10,114,528 | 10,054,796 | 9,122,000 | |||||||||||||
| and Distribution | ||||||||||||||||
| Capital Contractors, Inc. (3%)* |
Janitorial and Facilities Maintenance Services | Subordinated Notes (12% Cash, 2% PIK, Due 12/15) | 9,185,225 | 8,617,853 | 8,617,853 | |||||||||||
| Common Stock Warrants (20 shares) | 492,000 | 398,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 9,185,225 | 9,109,853 | 9,015,853 | ||||||||||||||
| Carolina Beverage Group, LLC (4%)* |
Beverage Manufacturing and Packaging | Subordinated Note (12% Cash, 4% PIK, Due 02/16) | 13,260,895 | 13,055,973 | 13,055,973 | |||||||||||
| Class A Units (11,974 units) | 1,077,615 | 1,120,000 | ||||||||||||||
| Class B Units (11,974 units) | 119,735 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 13,260,895 | 14,253,323 | 14,175,973 | ||||||||||||||
| CRS Reprocessing, LLC (8%)* |
Fluid Reprocessing Services | Subordinated Note (12% Cash, 2% PIK, Due 11/15) | 11,357,260 | 11,022,004 | 11,022,004 | |||||||||||
| Subordinated Note (10% Cash, 4% PIK, Due 11/15) | 11,016,583 | 10,020,937 | 10,020,937 | |||||||||||||
| Series C Preferred Units (26 units) | 288,342 | 476,000 | ||||||||||||||
| Common Unit Warrant (550 units) | 1,253,556 | 4,040,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 22,373,843 | 22,584,839 | 25,558,941 | ||||||||||||||
| CV Holdings, LLC (5%)* |
Specialty Healthcare Products Manufacturer | Subordinated Note (12% Cash, 4% PIK, Due 09/13) | 9,279,054 | 8,845,875 | 8,845,875 | |||||||||||
| Subordinated Note (12% Cash, Due 09/13) | 6,000,000 | 5,912,355 | 5,912,355 | |||||||||||||
| Royalty Rights | 874,400 | 920,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 15,279,054 | 15,632,630 | 15,678,230 | ||||||||||||||
| DLR Restaurants, LLC (3%)* |
Restaurant | Subordinated Note (12% Cash, 3% PIK, Due 03/16) | 10,660,442 | 10,448,050 | 10,448,050 | |||||||||||
| Subordinated Note (12% Cash, 4% PIK, Due 03/16) | 752,083 | 752,083 | 752,083 | |||||||||||||
| Royalty Rights | — | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 11,412,525 | 11,200,133 | 11,200,133 | ||||||||||||||
| Electronic Systems Protection, Inc. (2%)* |
Power Protection Systems Manufacturing | Subordinated Note (12% Cash, 2% PIK, Due 12/15) | 4,162,798 | 4,128,357 | 4,128,357 | |||||||||||
| Senior Note (8.3% Cash, Due 01/14) | 681,475 | 681,475 | 681,475 | |||||||||||||
| Common Stock (570 shares) | 285,000 | 367,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 4,844,273 | 5,094,832 | 5,176,832 | ||||||||||||||
| Frozen Specialties, Inc. (3%)* |
Frozen Foods Manufacturer | Subordinated Note (13% Cash, 5% PIK, Due 07/14) | 8,478,731 | 8,391,839 | 8,391,839 | |||||||||||
|
|
|
|
|
|
|
|||||||||||
| 8,478,731 | 8,391,839 | 8,391,839 | ||||||||||||||
| Garden Fresh Restaurant Corp. (0%)* |
Restaurant | Membership Units (5,000 units) | 500,000 | 820,000 | ||||||||||||
|
|
|
|
|
|||||||||||||
| 500,000 | 820,000 | |||||||||||||||
| Grindmaster-Cecilware Corp. (2%)* |
Food Services Equipment Manufacturer | Subordinated Note (12% Cash, 4.5% PIK, Due 04/16) | 6,274,350 | 6,198,309 | 5,104,000 | |||||||||||
|
|
|
|
|
|
|
|||||||||||
| 6,274,350 | 6,198,309 | 5,104,000 | ||||||||||||||
12
TRIANGLE CAPITAL CORPORATION
Consolidated Schedule of Investments
December 31, 2011
| Portfolio Company |
Industry |
Type of Investment(1)(2) |
Principal Amount |
Cost | Fair Value(3) |
|||||||||||
| Hatch Chile Co., LLC (2%)* |
Food Products Distributor | Senior Note (19% Cash, Due 07/15) | $ | 4,500,000 | $ | 4,411,111 | $ | 4,411,111 | ||||||||
| Subordinated Note (14% Cash, Due 07/15) | 1,000,000 | 865,687 | 865,687 | |||||||||||||
| Unit Purchase Warrant (5,265 units) | 149,800 | 216,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,500,000 | 5,426,598 | 5,492,798 | ||||||||||||||
| Home Physicians, LLC (“HP”) and Home Physicians Holdings, LP (“HPH”) (3%)* |
In-home Primary Care Physician Services | Subordinated Note-HP (12% Cash, 5% PIK, Due 03/16) | 10,654,096 | 10,454,979 | 8,868,000 | |||||||||||
| Subordinated Note-HPH (4% Cash, 6% PIK, Due 03/16) | 1,283,791 | 1,283,791 | — | |||||||||||||
| Royalty Rights | — | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 11,937,887 | 11,738,770 | 8,868,000 | ||||||||||||||
| Infrastructure Corporation of America, Inc. (3%)* |
Roadway Maintenance, Repair and Engineering Services | Subordinated Note (12% Cash, 1% PIK, Due 10/15) | 10,878,815 | 9,876,796 | 9,876,796 | |||||||||||
| Common Stock Purchase Warrant (199,526 shares) | 980,000 | 1,348,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 10,878,815 | 10,856,796 | 11,224,796 | ||||||||||||||
| Inland Pipe Rehabilitation Holding Company LLC |
Cleaning and Repair Services | Subordinated Note (13% Cash, 2.5% PIK, Due 12/16) | 20,277,473 | 19,996,881 | 19,996,881 | |||||||||||
| Membership Interest Purchase Warrant (3.0%) | 853,500 | 2,112,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 20,277,473 | 20,850,381 | 22,108,881 | ||||||||||||||
| Library Systems & Services, LLC (2%)* |
Municipal Business Services | Subordinated Note (12.5% Cash, 4.5% PIK, Due 06/15) | 5,250,001 | 5,130,053 | 5,130,053 | |||||||||||
| Common Stock Warrants (112 shares) | 58,995 | 723,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,250,001 | 5,189,048 | 5,853,053 | ||||||||||||||
| Magpul Industries Corp. (4%) |
Firearm Accessories Manufacturer and Distributor | Subordinated Note (12% Cash, 3% PIK, Due 03/17) | 13,300,000 | 13,042,711 | 13,042,711 | |||||||||||
| Preferred Units (1,470 units) | 1,470,000 | 1,470,000 | ||||||||||||||
| Common Units (30,000 units) | 30,000 | 30,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 13,300,000 | 14,542,711 | 14,542,711 | ||||||||||||||
| McKenzie Sports Products, LLC (2%)* |
Taxidermy Manufacturer | Subordinated Note (13% Cash, 1% PIK, Due 10/17) | 6,071,841 | 5,966,205 | 5,966,205 | |||||||||||
|
|
|
|
|
|
|
|||||||||||
| 6,071,841 | 5,966,205 | 5,966,205 | ||||||||||||||
| Media Storm, LLC (3%)* |
Marketing Services | Subordinated Note (12% Cash, 2% PIK, Due 10/17) | 8,532,111 | 8,449,580 | 8,449,580 | |||||||||||
| Membership Units (1,216,204 units) | 1,216,204 | 1,216,204 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 8,532,111 | 9,665,784 | 9,665,784 | ||||||||||||||
| Media Temple, Inc. (5%)* |
Web Hosting Services | Subordinated Note (12% Cash, 5.5% PIK, Due 04/15) | 8,800,000 | 8,658,463 | 8,658,463 | |||||||||||
| Convertible Note (8% Cash, 6% PIK, Due 04/15) | 3,200,000 | 2,778,030 | 4,687,000 | |||||||||||||
| Common Stock Purchase Warrant (28,000 shares) | 536,000 | 2,051,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 12,000,000 | 11,972,493 | 15,396,463 | ||||||||||||||
| Minco Technology Labs, LLC (2%)* |
Semiconductor Distribution | Subordinated Note (13% Cash, 3.25% PIK, Due 05/16) | 5,272,430 | 5,170,334 | 5,170,334 | |||||||||||
| Class A Units (5,000 units) | 500,000 | 31,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,272,430 | 5,670,334 | 5,201,334 | ||||||||||||||
| National Investment Managers Inc. (4%)* |
Retirement Plan Administrator | Subordinated Note (11% Cash, 5% PIK, Due 09/16) | 11,703,034 | 11,450,996 | 11,450,996 | |||||||||||
| Preferred A Units (90,000 units) | 900,000 | 479,000 | ||||||||||||||
| Common Units (10,000 units) | 100,000 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 11,703,034 | 12,450,996 | 11,929,996 | ||||||||||||||
| Novolyte Technologies, Inc. (4%)* |
Specialty Manufacturing | Subordinated Note (12% Cash, 4% PIK, Due 07/16) | 7,264,182 | 7,143,362 | 7,143,362 | |||||||||||
| Subordinated Note (12% Cash, 4% PIK, Due 07/16) | 2,334,916 | 2,296,081 | 2,296,081 | |||||||||||||
| Preferred Units (641 units) | 661,227 | 888,000 | ||||||||||||||
| Common Units (24,522 units) | 165,306 | 1,744,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 9,599,098 | 10,265,976 | 12,071,443 | ||||||||||||||
| Pomeroy IT Solutions (3%)* |
Information Technology Outsourcing Services |
Subordinated Notes (13% Cash, 2% PIK, Due 02/16) |
||||||||||||||
| 10,181,198 | 9,955,154 | 9,955,154 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 10,181,198 | 9,955,154 | 9,955,154 | ||||||||||||||
| PowerDirect Marketing, LLC (2%)* |
Marketing Services | Subordinated Note (12% Cash, 2% PIK, Due 05/16) | 8,100,993 | 7,580,433 | 7,580,433 | |||||||||||
| Common Unit Purchase Warrants | 402,000 | 548,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 8,100,993 | 7,982,433 | 8,128,433 | ||||||||||||||
| Renew Life Formulas, Inc. (4%)* |
Nutritional | Subordinated Notes (12% Cash, 3% PIK, Due | ||||||||||||||
| Supplement | 03/15) | 13,401,006 | 13,155,235 | 13,155,235 | ||||||||||||
| Manufacturing | ||||||||||||||||
| and | ||||||||||||||||
| Distribution | ||||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 13,401,006 | 13,155,235 | 13,155,235 | ||||||||||||||
13
TRIANGLE CAPITAL CORPORATION
Consolidated Schedule of Investments
December 31, 2011
| Portfolio Company |
Industry |
Type of Investment(1)(2) |
Principal Amount |
Cost | Fair Value(3) |
|||||||||||
| Sheplers, Inc. (4%)* |
Western Apparel Retailer | Subordinated Note (13.15% Cash, Due 12/16) | $ | 8,750,000 | $ | 8,531,250 | $ | 8,531,250 | ||||||||
| Subordinated Note (10% Cash, 7% PIK, Due 12/17) | 3,758,021 | 3,683,021 | 3,683,021 | |||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 12,508,021 | 12,214,271 | 12,214,271 | ||||||||||||||
| SRC, Inc. (3%)* |
Specialty Chemical Manufacturer | Subordinated Notes (12% Cash, 2% PIK, Due 09/14) | 8,879,665 | 8,640,013 | 8,640,013 | |||||||||||
| Common Stock Purchase Warrants | 123,800 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 8,879,665 | 8,763,813 | 8,640,013 | ||||||||||||||
| Syrgis Holdings, Inc. (1%)* |
Specialty Chemical Manufacturer | Senior Notes (7.75%-10.75% Cash, Due 08/12-02/14) | 2,444,766 | 2,437,942 | 2,437,942 | |||||||||||
| Class C Units (2,114 units) | 1,000,000 | 1,597,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 2,444,766 | 3,437,942 | 4,034,942 | ||||||||||||||
| TBG Anesthesia Management, LLC (3%)* |
Physician Management Services | Senior Note (13.5% Cash, Due 11/14) | 10,750,000 | 10,445,062 | 10,445,062 | |||||||||||
| Warrant (263 shares) | 276,100 | 239,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 10,750,000 | 10,721,162 | 10,684,062 | ||||||||||||||
| TMR Automotive Service Supply, LLC (2%) |
Automotive Supplies | Subordinated Note (12% Cash, 1% PIK, Due 03/16) | 5,000,000 | 4,738,933 | 4,738,933 | |||||||||||
| Unit Purchase Warrant (329,518 units) | 195,000 | 284,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,000,000 | 4,933,933 | 5,022,933 | ||||||||||||||
| Top Knobs USA, Inc. (3%) |
Hardware Designer and Distributor | Subordinated Note (12% Cash, 4.5% PIK, Due 05/17) | 10,369,002 | 10,209,875 | 10,209,875 | |||||||||||
| Common Stock (26,593 shares) | 750,000 | 733,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 10,369,002 | 10,959,875 | 10,942,875 | ||||||||||||||
| Trinity Consultants Holdings, Inc. (2%)* |
Air Quality Consulting Services | Subordinated Note (12% Cash, 2.5% PIK, Due 11/17) | 7,216,500 | 7,072,500 | 7,072,500 | |||||||||||
| Series A Preferred Stock (10,000 units) | 950,000 | 950,000 | ||||||||||||||
| Common Stock (55,556 units) | 50,000 | 50,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 7,216,500 | 8,072,500 | 8,072,500 | ||||||||||||||
| TrustHouse Services Group, Inc. (4%)* |
Food Management Services | Subordinated Note (12% Cash, 2% PIK, Due 07/18) | 13,362,115 | 13,136,232 | 13,136,232 | |||||||||||
| Class A Units (1,557 units) | 512,124 | 799,000 | ||||||||||||||
| Class B Units (82 units) | 26,954 | 28,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 13,362,115 | 13,675,310 | 13,963,232 | ||||||||||||||
| Tulsa Inspection Resources, Inc. (2%)* |
Pipeline Inspection Services | Subordinated Note (14%-17.5% Cash, Due 03/14) | 5,810,588 | 5,574,292 | 5,574,292 | |||||||||||
| Common Unit (1 unit) | 200,000 | 117,000 | ||||||||||||||
| Common Stock Warrants (8 shares) | 321,000 | 627,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,810,588 | 6,095,292 | 6,318,292 | ||||||||||||||
| Twin-Star International, Inc. (2%)* |
Consumer Home Furnishings Manufacturer | Subordinated Note (12% Cash, 1% PIK, Due 04/14) | 4,500,000 | 4,476,065 | 4,476,065 | |||||||||||
| Senior Note (4.4%, Due 04/13) | 1,052,240 | 1,052,240 | 1,052,240 | |||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,552,240 | 5,528,305 | 5,528,305 | ||||||||||||||
| Wholesale Floors, Inc. (1%)* |
Commercial Services | Subordinated Note (12.5% Cash, 3.5% PIK, Due 06/14) | 3,858,183 | 3,773,066 | 3,773,066 | |||||||||||
| Membership Interest Purchase Warrant (4.0%) | 132,800 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 3,858,183 | 3,905,866 | 3,773,066 | ||||||||||||||
| Workforce Software, LLC (2%)* |
Software Provider | Subordinated Note (11% Cash, 3% PIK, Due 11/16) | 7,000,000 | 6,065,200 | 6,065,200 | |||||||||||
| Class B Preferred Units (1,020,000 units) | 1,020,000 | 1,020,000 | ||||||||||||||
| Common Unit Purchase Warrants (2,224,561 units) | 782,300 | 782,300 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 7,000,000 | 7,867,500 | 7,867,500 | ||||||||||||||
| Yellowstone Landscape Group, Inc. (4%)* |
Landscaping Services | Subordinated Note (12% Cash, 3% PIK, Due 04/14) | 12,816,222 | 12,678,077 | 12,678,077 | |||||||||||
|
|
|
|
|
|
|
|||||||||||
| 12,816,222 | 12,678,077 | 12,678,077 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| Subtotal Non–Control / Non–Affiliate Investments |
377,095,379 | 389,312,451 | 396,502,490 | |||||||||||||
14
TRIANGLE CAPITAL CORPORATION
Consolidated Schedule of Investments
December 31, 2011
| Portfolio Company |
Industry |
Type of Investment(1)(2) |
Principal Amount |
Cost | Fair Value(3) |
|||||||||||
| Affiliate Investments: |
||||||||||||||||
| American De-Rosa Lamparts, LLC and Hallmark Lighting (2%)* |
Wholesale and Distribution | Subordinated Note (10% PIK, Due 10/13) | $ | 6,056,794 | $ | 5,213,450 | $ | 5,213,450 | ||||||||
| Membership Units (6,516 units) | 350,000 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 6,056,794 | 5,563,450 | 5,213,450 | ||||||||||||||
| AP Services, Inc. (2%)* |
Fluid Sealing Supplies and Services | Subordinated Note (12% Cash, 2% PIK, Due 09/15) | 4,351,545 | 4,258,465 | 4,258,465 | |||||||||||
| Class A Units (933 units) | 933,333 | 1,181,000 | ||||||||||||||
| Class B Units (496 units) | — | 80,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 4,351,545 | 5,191,798 | 5,519,465 | ||||||||||||||
| Asset Point, LLC (2%)* |
Asset Management Software Provider | Senior Note (12% Cash, 5% PIK, Due 03/13) | 6,054,948 | 6,024,163 | 6,024,163 | |||||||||||
| Senior Note (12% Cash, 2% PIK, Due 07/15) | 617,572 | 617,572 | 518,000 | |||||||||||||
| Subordinated Note (7% Cash, Due 03/13) | 941,798 | 941,798 | 786,000 | |||||||||||||
| Membership Units (1,000,000 units) | 8,203 | 346,000 | ||||||||||||||
| Options to Purchase Membership Units (342,407 units) | 500,000 | 149,000 | ||||||||||||||
| Membership Unit Warrants (356,506 units) | — | 2,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 7,614,318 | 8,091,736 | 7,825,163 | ||||||||||||||
| Axxiom Manufacturing, Inc. (0%)* |
Industrial Equipment Manufacturer | Common Stock (136,400 shares) | 200,000 | 1,140,000 | ||||||||||||
| Common Stock Warrant (4,000 shares) | — | 33,000 | ||||||||||||||
|
|
|
|
|
|||||||||||||
| 200,000 | 1,173,000 | |||||||||||||||
| Brantley Transportation, LLC (“Brantley Transportation”) and Pine Street Holdings, LLC (“Pine
Street”) (4) |
Oil and Gas Services | Subordinated Note—Brantley Transportation (14% Cash, 5% PIK, Due 12/12) | 3,947,627 | 3,915,231 | 3,915,231 | |||||||||||
| Common Unit Warrants—Brantley Transportation (4,560 common units) | 33,600 | 401,000 | ||||||||||||||
| Preferred Units—Pine Street (200 units) | 200,000 | 757,000 | ||||||||||||||
| Common Unit Warrants—Pine Street (2,220 units) | — | 99,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 3,947,627 | 4,148,831 | 5,172,231 | ||||||||||||||
| Captek Softgel International, Inc. (3%)* |
Nutraceutical Manufacturer | Subordinated Note (12% Cash, 4% PIK, Due 08/16) | 8,277,116 | 8,133,312 | 8,133,312 | |||||||||||
| Class A Units (80,000 units) | 800,000 | 1,292,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 8,277,116 | 8,933,312 | 9,425,312 | ||||||||||||||
|
Dyson Corporation (1%)* |
Custom Forging and Fastener Supplies |
Class A Units (1,000,000 units) |
|
1,000,000
|
|
|
3,836,000
|
| ||||||||
|
|
|
|
|
|||||||||||||
| 1,000,000 | 3,836,000 | |||||||||||||||
| Equisales, LLC (1%)* |
Energy Products and Services | Subordinated Note (13% Cash, 4% PIK, Due 04/12) | 3,125,336 | 3,116,853 | 3,045,000 | |||||||||||
| Class A Units (500,000 units) | 480,900 | 535,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 3,125,336 | 3,597,753 | 3,580,000 | ||||||||||||||
| Fischbein Partners, LLC (3%)* |
Packaging and Materials Handling Equipment Manufacturer | Subordinated Note (12% Cash, 2% PIK, Due 10/16) | 6,756,525 | 6,636,697 | 6,636,697 | |||||||||||
| Class A Units (1,750,000 units)
|
417,088 | 3,344,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 6,756,525 | 7,053,785 | 9,980,697 | ||||||||||||||
| Main Street Gourmet, LLC (1%)* |
Baked Goods Provider | Subordinated Notes (12% Cash, 4.5% PIK, Due 10/16) | 4,135,501 | 4,063,598 | 4,063,598 | |||||||||||
| Jr. Subordinated Notes (8% Cash, 2% PIK, Due 04/17) | 1,014,963 | 996,975 | 716,000 | |||||||||||||
| Preferred Units (233 units) | 211,867 | — | ||||||||||||||
| Common B Units (3,000 units) | 23,140 | — | ||||||||||||||
| Common A Units (1,652 units) | 14,993 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,150,464 | 5,310,573 | 4,779,598 | ||||||||||||||
| Plantation Products, LLC (5%)* |
Seed Manufacturing | Subordinated Notes (13% Cash, 4.5% PIK, Due 06/16) | 15,203,916 | 14,889,867 | 14,889,867 | |||||||||||
| Preferred Units (1,127 units) | 1,127,000 | 1,221,000 | ||||||||||||||
| Common Units (92,000 units) | 23,000 | 142,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 15,203,916 | 16,039,867 | 16,252,867 | ||||||||||||||
| QC Holdings, Inc. (0%)* |
Lab Testing Services | Common Stock (5,594 shares) | 563,602 | 393,000 | ||||||||||||
|
|
|
|
|
|||||||||||||
| 563,602 | 393,000 | |||||||||||||||
| Technology Crops International (2%)* |
Supply Chain Management Services | Subordinated Note (12% Cash, 5% PIK, Due 03/15) | 5,610,350 | 5,543,617 | 5,543,617 | |||||||||||
| Common Units (50 units) | 500,000 | 589,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,610,350 | 6,043,617 | 6,132,617 | ||||||||||||||
15
TRIANGLE CAPITAL CORPORATION
Consolidated Schedule of Investments
December 31, 2011
| Portfolio Company |
Industry |
Type of Investment(1)(2) |
Principal Amount |
Cost | Fair Value(3) |
|||||||||||
| Venture Technology Groups, Inc. (2%)* |
Fluid and Gas | Subordinated Note (12.5% Cash, 4% PIK, | ||||||||||||||
| Handling Products Distributor | Due 09/16) | $ | 5,444,612 | $ | 5,341,062 | $ | 5,341,062 | |||||||||
| Class A Units (1,000,000 units) | 1,000,000 | 530,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 5,444,612 | 6,341,062 | 5,871,062 | ||||||||||||||
| Waste Recyclers Holdings, LLC (2%)* |
Environmental and Facilities Services | Class A Preferred Units (280 units) | 2,251,100 | — | ||||||||||||
| Class B Preferred Units (985,372 units) | 3,304,218 | 4,310,000 | ||||||||||||||
| Class C Preferred Units (1,444,475 units) | 1,499,531 | 1,752,000 | ||||||||||||||
| Common Unit Purchase Warrant (1,170,083 units) | 748,900 | — | ||||||||||||||
| Common Units (153,219 units) | 180,783 | — | ||||||||||||||
|
|
|
|
|
|||||||||||||
| 7,984,532 | 6,062,000 | |||||||||||||||
| Wythe Will Tzetzo, LLC (4%)* |
Confectionary Goods Distributor | Subordinated Notes (13% Cash, Due 10/16) | 10,357,475 | 9,885,836 | 9,885,836 | |||||||||||
| Series A Preferred Units (74,764 units) | 1,500,000 | 1,784,000 | ||||||||||||||
| Common Unit Purchase Warrants (25,065 units) | 301,510 | 380,000 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 10,357,475 | 11,687,346 | 12,049,836 | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| Subtotal Affiliate Investments |
81,896,078 | 97,751,264 | 103,266,298 | |||||||||||||
| Control Investments: |
||||||||||||||||
| FCL Graphics, Inc. (“FCL”) and FCL Holding SPV, LLC (“SPV”) (1%)* |
Commercial Printing Services | Senior Note—FCL (5.0% Cash, Due 9/16) | 1,485,821 | 1,478,538 | 1,478,538 | |||||||||||
| Senior Note—FCL (8.0% Cash, 2% PIK, Due 9/16) | 1,147,836 | 1,145,436 | 955,000 | |||||||||||||
| Senior Note—SPV (2.5% Cash, 6% PIK, Due 9/16) | 950,328 | 950,328 | 343,000 | |||||||||||||
| Members Interests—SPV (299,875 units) | — | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 3,583,985 | 3,574,302 | 2,776,538 | ||||||||||||||
| Fire Sprinkler Systems, Inc. (0%)* |
Specialty Trade Contractors | Subordinated Notes (2% PIK, Due 04/12) | 3,281,284 | 2,780,028 | 443,000 | |||||||||||
| Common Stock (2,978 shares) | 294,624 | — | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| 3,281,284 | 3,074,652 | 443,000 | ||||||||||||||
| Fischbein, LLC (1%)* |
Packaging and Materials Handling Equipment Manufacturer | Class A-1 Common Units (501,984 units) | 59,315 | 283,816 | ||||||||||||
| Class A Common Units (3,839,068 units) |
|
453,630 |
|
|
1,859,433 |
| ||||||||||