ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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) |
Large accelerated filer | ¨ | Accelerated filer | ý |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | ||
PART I – FINANCIAL INFORMATION | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
September 30, 2012 | December 31, 2011 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Investments at fair value: | |||||||
Non–Control / Non–Affiliate investments (cost of $485,599,055 and $389,312,451 at September 30, 2012 and December 31, 2011, respectively) | $ | 498,027,652 | $ | 396,502,490 | |||
Affiliate investments (cost of $126,931,742 and $97,751,264 at September 30, 2012 and December 31, 2011, respectively) | 128,065,635 | 103,266,298 | |||||
Control investments (cost of $11,462,759 and $11,278,339 at September 30, 2012 and December 31, 2011, respectively) | 5,216,666 | 7,309,787 | |||||
Total investments at fair value | 631,309,953 | 507,078,575 | |||||
Cash and cash equivalents | 60,110,779 | 66,868,340 | |||||
Interest and fees receivable | 3,969,957 | 1,883,395 | |||||
Prepaid expenses and other current assets | 451,017 | 623,318 | |||||
Deferred financing fees | 8,635,658 | 6,682,889 | |||||
Property and equipment, net | 54,826 | 58,304 | |||||
Total assets | $ | 704,532,190 | $ | 583,194,821 | |||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 4,885,429 | $ | 4,116,822 | |||
Interest payable | 857,450 | 3,521,932 | |||||
Taxes payable | 307,000 | 1,402,866 | |||||
Deferred income taxes | 1,220,454 | 628,742 | |||||
Borrowings under credit facility | 26,000,000 | 15,000,000 | |||||
Senior notes | 69,000,000 | — | |||||
SBA-guaranteed debentures payable | 183,559,252 | 224,237,504 | |||||
Total liabilities | 285,829,585 | 248,907,866 | |||||
Net Assets: | |||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 27,320,385 and 22,774,726 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively) | 27,320 | 22,775 | |||||
Additional paid-in-capital | 398,842,128 | 318,297,269 | |||||
Investment income in excess of distributions | 7,501,895 | 6,847,486 | |||||
Accumulated realized gains on investments | 6,235,321 | 1,011,649 | |||||
Net unrealized appreciation of investments | 6,095,941 | 8,107,776 | |||||
Total net assets | 418,702,605 | 334,286,955 | |||||
Total liabilities and net assets | $ | 704,532,190 | $ | 583,194,821 | |||
Net asset value per share | $ | 15.33 | $ | 14.68 |
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||
September 30, 2012 | September 30, 2011 | September 30, 2012 | September 30, 2011 | ||||||||||||
Investment income: | |||||||||||||||
Loan interest, fee and dividend income: | |||||||||||||||
Non–Control / Non–Affiliate investments | $ | 16,376,768 | $ | 10,715,995 | $ | 44,401,267 | $ | 30,690,335 | |||||||
Affiliate investments | 3,838,341 | 2,409,455 | 9,508,295 | 5,508,253 | |||||||||||
Control investments | 49,384 | 96,535 | 161,375 | 1,243,396 | |||||||||||
Total loan interest, fee and dividend income | 20,264,493 | 13,221,985 | 54,070,937 | 37,441,984 | |||||||||||
Payment–in–kind interest income: | |||||||||||||||
Non–Control / Non–Affiliate investments | 3,017,120 | 2,217,084 | 8,454,799 | 5,585,410 | |||||||||||
Affiliate investments | 946,345 | 668,660 | 2,470,663 | 1,613,555 | |||||||||||
Control investments | 20,250 | 18,592 | 60,221 | 137,393 | |||||||||||
Total payment–in–kind interest income | 3,983,715 | 2,904,336 | 10,985,683 | 7,336,358 | |||||||||||
Interest income from cash and cash equivalent investments | 78,500 | 94,489 | 344,407 | 281,611 | |||||||||||
Total investment income | 24,326,708 | 16,220,810 | 65,401,027 | 45,059,953 | |||||||||||
Expenses: | |||||||||||||||
Interest and other financing fees | 4,046,885 | 2,901,089 | 11,502,245 | 7,796,997 | |||||||||||
General and administrative expenses | 4,403,469 | 2,927,465 | 11,778,156 | 8,761,462 | |||||||||||
Total expenses | 8,450,354 | 5,828,554 | 23,280,401 | 16,558,459 | |||||||||||
Net investment income | 15,876,354 | 10,392,256 | 42,120,626 | 28,501,494 | |||||||||||
Net realized gain on investments – Non–Control / Non–Affiliate | 816,393 | 1,011,649 | 3,600,501 | 1,839,248 | |||||||||||
Net realized gain on investments – Affiliate | 785,132 | — | 785,132 | — | |||||||||||
Net realized gain (loss) on investments – Control | — | (2,997,979 | ) | 838,039 | 9,155,191 | ||||||||||
Net unrealized appreciation (depreciation) of investments | (586,937 | ) | 9,030,048 | (2,011,835 | ) | 4,966,744 | |||||||||
Total net gain on investments | 1,014,588 | 7,043,718 | 3,211,837 | 15,961,183 | |||||||||||
Loss on extinguishment of debt | (624,768 | ) | — | (829,811 | ) | (157,590 | ) | ||||||||
Income tax benefit (provision) | (34,388 | ) | 34,269 | (27,157 | ) | 61,628 | |||||||||
Net increase in net assets resulting from operations | $ | 16,231,786 | $ | 17,470,243 | $ | 44,475,495 | $ | 44,366,715 | |||||||
Net investment income per share—basic and diluted | $ | 0.58 | $ | 0.52 | $ | 1.59 | $ | 1.54 | |||||||
Net increase in net assets resulting from operations per share—basic and diluted | $ | 0.59 | $ | 0.87 | $ | 1.68 | $ | 2.40 | |||||||
Dividends declared per common share | $ | 0.52 | $ | 0.44 | $ | 1.49 | $ | 1.30 | |||||||
Weighted average number of shares outstanding—basic and diluted | 27,290,493 | 20,015,230 | 26,545,542 | 18,489,842 |
Common Stock | Additional Paid In Capital | Investment Income in Excess of (Less Than) Distributions | Accumulated Realized Gains (Losses) on Investments | Net Unrealized Appreciation (Depreciation) of Investments | Total Net Assets | |||||||||||||||||||||
Number of Shares | Par Value | |||||||||||||||||||||||||
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 | — | — | — | 28,501,494 | — | — | 28,501,494 | |||||||||||||||||||
Stock-based compensation | — | — | 1,409,654 | — | — | — | 1,409,654 | |||||||||||||||||||
Net realized gain on investments | — | — | — | — | 10,994,439 | (9,250,107 | ) | 1,744,332 | ||||||||||||||||||
Net unrealized appreciation of investments | — | — | — | — | — | 14,216,851 | 14,216,851 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (157,590 | ) | — | — | (157,590 | ) | |||||||||||||||||
Income tax provision | — | — | — | 61,628 | — | — | 61,628 | |||||||||||||||||||
Dividends/distributions declared | 181,755 | 182 | 3,082,442 | (25,910,242 | ) | — | — | (22,827,618 | ) | |||||||||||||||||
Public offerings of common stock | 7,475,000 | 7,475 | 128,652,398 | — | — | — | 128,659,873 | |||||||||||||||||||
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, September 30, 2011 | 22,714,851 | $ | 22,715 | $ | 316,103,812 | $ | 5,860,838 | $ | 2,750,063 | $ | 6,707,047 | $ | 331,444,475 |
Common Stock | Additional Paid In Capital | Investment Income in Excess of (Less Than) Distributions | Accumulated Realized Gains (Losses) on Investments | Net Unrealized Appreciation (Depreciation) of Investments | Total Net Assets | |||||||||||||||||||||
Number of Shares | Par Value | |||||||||||||||||||||||||
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 | — | — | — | 42,120,626 | — | — | 42,120,626 | |||||||||||||||||||
Stock-based compensation | — | — | 2,074,927 | — | — | — | 2,074,927 | |||||||||||||||||||
Net realized gain on investments | — | — | — | — | 5,223,672 | (3,713,579 | ) | 1,510,093 | ||||||||||||||||||
Net unrealized appreciation of investments | — | — | — | — | — | 1,701,744 | 1,701,744 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (829,811 | ) | — | — | (829,811 | ) | |||||||||||||||||
Income tax provision | — | — | — | (27,157 | ) | — | — | (27,157 | ) | |||||||||||||||||
Dividends/distributions declared | 113,112 | 113 | 2,462,834 | (40,609,249 | ) | — | — | (38,146,302 | ) | |||||||||||||||||
Public offering of common stock | 4,255,000 | 4,255 | 77,118,719 | — | — | — | 77,122,974 | |||||||||||||||||||
Issuance of restricted stock | 235,086 | 235 | (235 | ) | — | — | — | — | ||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (57,539 | ) | (58 | ) | (1,111,386 | ) | — | — | — | (1,111,444 | ) | |||||||||||||||
Balance, September 30, 2012 | 27,320,385 | $ | 27,320 | $ | 398,842,128 | $ | 7,501,895 | $ | 6,235,321 | $ | 6,095,941 | $ | 418,702,605 |
Nine Months Ended | Nine Months Ended | ||||||
September 30, 2012 | September 30, 2011 | ||||||
Cash flows from operating activities: | |||||||
Net increase in net assets resulting from operations | $ | 44,475,495 | $ | 44,366,715 | |||
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | |||||||
Purchases of portfolio investments | (228,510,522 | ) | (184,144,674 | ) | |||
Repayments received/sales of portfolio investments | 113,898,080 | 63,434,578 | |||||
Loan origination and other fees received | 3,565,896 | 3,689,444 | |||||
Net realized (gain) loss on investments | (5,223,672 | ) | (10,994,439 | ) | |||
Net unrealized depreciation (appreciation) of investments | 1,420,124 | (5,049,919 | ) | ||||
Deferred income taxes | 591,712 | 83,173 | |||||
Payment–in–kind interest accrued, net of payments received | (5,501,302 | ) | (3,452,028 | ) | |||
Amortization of deferred financing fees | 789,479 | 724,663 | |||||
Loss on extinguishment of debt | 829,811 | — | |||||
Accretion of loan origination and other fees | (2,397,275 | ) | (1,029,151 | ) | |||
Accretion of loan discounts | (1,482,707 | ) | (843,534 | ) | |||
Accretion of discount on SBA-guaranteed debentures payable | 131,748 | 128,528 | |||||
Depreciation expense | 24,145 | 21,170 | |||||
Stock-based compensation | 2,074,927 | 1,409,654 | |||||
Changes in operating assets and liabilities: | |||||||
Interest and fees receivable | (2,086,562 | ) | (1,460,945 | ) | |||
Prepaid expenses | 172,301 | (389,127 | ) | ||||
Accounts payable and accrued liabilities | 768,607 | 393,049 | |||||
Interest payable | (2,664,482 | ) | (1,574,400 | ) | |||
Deferred revenue | — | 7,718 | |||||
Taxes payable | (1,095,866 | ) | (191,672 | ) | |||
Net cash used in operating activities | (80,220,063 | ) | (94,871,197 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (20,667 | ) | (23,267 | ) | |||
Net cash used in investing activities | (20,667 | ) | (23,267 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings under SBA-guaranteed debentures payable | — | 31,100,000 | |||||
Repayments of SBA-guaranteed debentures payable | (40,810,000 | ) | (9,500,000 | ) | |||
Borrowings under credit facility | 26,000,000 | — | |||||
Repayments of credit facility | (15,000,000 | ) | — | ||||
Proceeds from senior notes | 69,000,000 | — | |||||
Financing fees paid | (3,572,059 | ) | (1,265,628 | ) | |||
Proceeds from public stock offerings, net of expenses | 77,122,974 | 128,659,873 | |||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (1,111,444 | ) | (643,308 | ) | |||
Cash dividends paid | (38,146,302 | ) | (22,827,618 | ) | |||
Net cash provided by financing activities | 73,483,169 | 125,523,319 | |||||
Net increase (decrease) in cash and cash equivalents | (6,757,561 | ) | 30,628,855 | ||||
Cash and cash equivalents, beginning of period | 66,868,340 | 54,820,222 | |||||
Cash and cash equivalents, end of period | $ | 60,110,779 | $ | 85,449,077 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 12,999,240 | $ | 8,675,796 | |||
Summary of non-cash financing transactions: | |||||||
Dividends paid through DRIP share issuances | $ | 2,462,947 | $ | 3,082,624 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 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) | $ | 4,093,283 | $ | 4,080,366 | $ | 4,080,366 | |||||||
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 | 773,000 | |||||||||||||
4,106,140 | 4,364,155 | 4,994,794 | |||||||||||||
Ann’s House of Nuts, Inc. (3%)* | Trail Mixes and Nut Producers | Subordinated Note (12% Cash, 1% PIK, Due 11/17) | 7,134,675 | 6,805,180 | 6,805,180 | ||||||||||
Preferred A Units (22,368 units) | 2,124,957 | 2,878,000 | |||||||||||||
Preferred B Units (10,380 units) | 986,059 | 1,343,000 | |||||||||||||
Common Units (190,935 units) | 150,000 | 105,000 | |||||||||||||
Common Stock Warrants (14,558 shares) | 14,558 | 10,000 | |||||||||||||
7,134,675 | 10,080,754 | 11,141,180 | |||||||||||||
Aramsco, Inc. (0%)* | Environmental Emergency Preparedness Products Distributor | Subordinated Note (12% Cash, 2% PIK, Due 03/14) | 1,639,059 | 1,550,199 | 1,550,199 | ||||||||||
1,639,059 | 1,550,199 | 1,550,199 | |||||||||||||
Assurance Operations Corporation (0%)* | Metal Fabrication | Common Stock (517 shares) | 516,867 | 930,000 | |||||||||||
516,867 | 930,000 | ||||||||||||||
BioSan Laboratories, Inc. (1%)* | Nutritional Supplement Manufacturing and Distribution | Subordinated Note (12% Cash, 3.8% PIK, Due 10/16) | 5,428,328 | 5,342,823 | 5,342,823 | ||||||||||
5,428,328 | 5,342,823 | 5,342,823 | |||||||||||||
Botanical Laboratories, Inc. (2%)* | Nutritional Supplement Manufacturing and Distribution | Senior Notes (14% Cash, 1% PIK, Due 02/15) | 9,674,809 | 9,243,485 | 9,243,485 | ||||||||||
Common Unit Warrants (998,680 units) | 474,600 | 774,000 | |||||||||||||
9,674,809 | 9,718,085 | 10,017,485 | |||||||||||||
Capital Contractors, Inc. (2%)* | Janitorial and Facilities Maintenance Services | Subordinated Notes (12% Cash, 2% PIK, Due 12/15) | 9,325,994 | 8,845,622 | 8,845,622 | ||||||||||
Common Stock Warrants (20 shares) | 492,000 | 470,000 | |||||||||||||
9,325,994 | 9,337,622 | 9,315,622 | |||||||||||||
Carolina Beverage Group, LLC (0%)* | Beverage Manufacturing and Packaging | Class A Units (11,974 units) | 1,077,615 | 1,333,000 | |||||||||||
Class B Units (11,974 units) | 119,735 | 628,000 | |||||||||||||
1,197,350 | 1,961,000 | ||||||||||||||
Chromaflo Technologies, LLC (4%)* | Colorant Manufacturer and Distributor | Subordinated Note (12% Cash, 2% PIK, Due 10/17) | 16,383,163 | 16,079,882 | 16,079,882 | ||||||||||
Preferred A Units (22,561 units) | 2,256,098 | 2,256,098 | |||||||||||||
16,383,163 | 18,335,980 | 18,335,980 | |||||||||||||
Continental Anesthesia Management, LLC (2%)* | Physicians Management Services | Senior Note (13.5% Cash, Due 11/14) | 10,200,000 | 9,964,639 | 9,964,639 | ||||||||||
Warrant (263 shares) | 276,100 | 43,000 | |||||||||||||
10,200,000 | 10,240,739 | 10,007,639 | |||||||||||||
CRS Reprocessing, LLC (6%)* | Fluid Reprocessing Services | Subordinated Note (10% Cash, 4% PIK, Due 11/15) | 11,648,849 | 11,386,608 | 11,386,608 | ||||||||||
Subordinated Note (10% Cash, 4% PIK, Due 11/15) | 12,846,496 | 11,529,465 | 11,529,465 | ||||||||||||
Series C Preferred Units (26 units) | 288,342 | 449,000 | |||||||||||||
Common Unit Warrant (664 units) | 1,759,556 | 3,642,000 | |||||||||||||
Series D Preferred Units (16 units) | 107,074 | 183,000 | |||||||||||||
24,495,345 | 25,071,045 | 27,190,073 | |||||||||||||
DataSource Incorporated (2%)* | Print Supply Chain Management Services | Subordinated Note (12% Cash, 2% PIK, Due 01/18) | 8,540,611 | 8,376,178 | 8,376,178 | ||||||||||
Common Units (47 units) | 1,000,000 | 1,000,000 | |||||||||||||
8,540,611 | 9,376,178 | 9,376,178 | |||||||||||||
DCWV Acquisition Corporation (1%)* | Arts & Crafts and Home Decor Products Designer and Supplier | Subordinated Note (12% Cash, 3% PIK, Due 09/17) | 6,008,500 | 5,888,500 | 5,888,500 | ||||||||||
6,008,500 | 5,888,500 | 5,888,500 | |||||||||||||
DLR Restaurants, LLC (3%)* | Restaurant | Subordinated Note (12% Cash, 2% PIK, Due 03/16) | 10,878,564 | 10,697,145 | 10,697,145 | ||||||||||
Subordinated Note (12% Cash, 4% PIK, Due 03/16) | 775,291 | 760,291 | 760,291 | ||||||||||||
Royalty Rights | — | 109,000 | |||||||||||||
11,653,855 | 11,457,436 | 11,566,436 | |||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 30, 2012 | |||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | ||||||||||
Eckler's Holdings, Inc. (2%)* | Restoration Parts and Accessories for Classic Cars and Trucks | Subordinated Note (11% Cash, 4% PIK, Due 07/18) | $ | 5,620,029 | $ | 5,484,806 | $ | 5,484,806 | |||||||
Common Stock (15,850 shares) | 158,500 | 158,500 | |||||||||||||
Preferred Stock A (1,427 shares) | 1,426,500 | 1,426,500 | |||||||||||||
5,620,029 | 7,069,806 | 7,069,806 | |||||||||||||
Electronic Systems Protection, Inc. (1%)* | Power Protection Systems Manufacturing | Subordinated Note (12% Cash, 2% PIK, Due 12/15) | 4,225,552 | 4,196,392 | 4,196,392 | ||||||||||
Common Stock (570 shares) | 285,000 | 315,000 | |||||||||||||
4,225,552 | 4,481,392 | 4,511,392 | |||||||||||||
Empire Facilities Management Group, Inc. (1%)* | Retail, Restaurant, and Commercial Facilities Maintenance | Subordinated Note (9% Cash, 4% PIK, Due 07/18) | 5,049,444 | 4,964,734 | 4,964,734 | ||||||||||
Convertible Preferred Units (2,500 units) | 250,000 | 250,000 | |||||||||||||
5,049,444 | 5,214,734 | 5,214,734 | |||||||||||||
Frozen Specialties, Inc. (2%)* | Frozen Foods Manufacturer | Subordinated Note (13% Cash, 5% PIK, Due 07/14) | 8,806,906 | 8,743,231 | 8,743,231 | ||||||||||
8,806,906 | 8,743,231 | 8,743,231 | |||||||||||||
Garden Fresh Restaurant Corp. (0%)* | Restaurant | Membership Units (5,000 units) | 500,000 | 511,000 | |||||||||||
500,000 | 511,000 | ||||||||||||||
Grindmaster-Cecilware Corp. (1%)* | Food Services Equipment Manufacturer | Subordinated Note (12% Cash, 6% PIK, Due 04/16) | 6,566,765 | 6,505,970 | 5,798,000 | ||||||||||
6,566,765 | 6,505,970 | 5,798,000 | |||||||||||||
Hatch Chile Co., LLC (1%)* | Food Products Distributor | Senior Note (19% Cash, Due 07/15) | 3,600,000 | 3,525,624 | 3,525,624 | ||||||||||
Subordinated Note (14% Cash, Due 07/15) | 800,000 | 689,289 | 689,289 | ||||||||||||
Unit Purchase Warrant (5,265 units) | 149,800 | 273,000 | |||||||||||||
4,400,000 | 4,364,713 | 4,487,913 | |||||||||||||
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) | 11,066,468 | 10,618,484 | 6,356,000 | ||||||||||
Subordinated Note-HPH (4% Cash, 6% PIK, Due 03/16) | 1,343,623 | 1,303,361 | — | ||||||||||||
Senior Subordinated Note-HP (14% Cash, 2% PIK, Due 03/16) | 609,126 | 598,767 | 598,767 | ||||||||||||
Royalty Rights | — | — | |||||||||||||
13,019,217 | 12,520,612 | 6,954,767 | |||||||||||||
Infrastructure Corporation of America, Inc. (3%)* | Roadway Maintenance, Repair and Engineering Services | Subordinated Note (12% Cash, 1% PIK, Due 10/15) | 10,961,896 | 10,126,400 | 10,126,400 | ||||||||||
Common Stock Purchase Warrant (199,526 shares) | 980,000 | 1,135,000 | |||||||||||||
10,961,896 | 11,106,400 | 11,261,400 | |||||||||||||
Inland Pipe Rehabilitation Holding Company LLC (5%)* | Cleaning and Repair Services | Subordinated Note (13% Cash, 2.5% PIK, Due 12/16) | 20,665,759 | 20,416,709 | 20,416,709 | ||||||||||
Membership Interest Purchase Warrant (3.0%) | 853,500 | 2,307,000 | |||||||||||||
20,665,759 | 21,270,209 | 22,723,709 | |||||||||||||
Library Systems & Services, LLC (2%)* | Municipal Business Services | Subordinated Note (12.5% Cash, 4.5% PIK, Due 06/15) | 5,429,814 | 5,331,408 | 5,331,408 | ||||||||||
Common Stock Warrants (112 shares) | 58,995 | 1,001,000 | |||||||||||||
5,429,814 | 5,390,403 | 6,332,408 | |||||||||||||
Magpul Industries Corp. (4%)* | Firearm Accessories Manufacturer and Distributor | Subordinated Note (12% Cash, 3% PIK, Due 03/17) | 13,300,000 | 13,070,443 | 13,070,443 | ||||||||||
Preferred Units (1,470 units) | 1,470,000 | 1,694,000 | |||||||||||||
Common Units (30,000 units) | 30,000 | 3,100,000 | |||||||||||||
13,300,000 | 14,570,443 | 17,864,443 | |||||||||||||
Marine Acquisition Corp. (3%)* | Boat Steering System and Driver Control Provider | Subordinated Note (11.50% Cash, 2% PIK, Due 05/17) | 12,000,000 | 11,730,000 | 11,730,000 | ||||||||||
12,000,000 | 11,730,000 | 11,730,000 | |||||||||||||
Media Storm, LLC (2%)* | Marketing Services | Subordinated Note (12% Cash, 2% PIK, Due 10/17) | 8,016,580 | 7,941,909 | 7,941,909 | ||||||||||
Membership Units (1,216,204 units) | 1,120,533 | 1,181,001 | |||||||||||||
8,016,580 | 9,062,442 | 9,122,910 | |||||||||||||
Media Temple, Inc. (4%)* | Web Hosting Services | Subordinated Note (12% Cash, 3% PIK, Due 04/15) | 8,800,000 | 8,686,475 | 8,686,475 | ||||||||||
Convertible Note (8% Cash, 6% PIK, Due 04/15) | 3,200,000 | 2,865,998 | 5,485,000 | ||||||||||||
Common Stock Purchase Warrant (28,000 shares) | 536,000 | 2,400,000 | |||||||||||||
12,000,000 | 12,088,473 | 16,571,475 | |||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 30, 2012 | |||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | ||||||||||
Minco Technology Labs, LLC (1%)* | Semiconductor Distribution | Subordinated Note (6.5% Cash, 3.5% PIK, Due 05/16) | $ | 5,407,351 | $ | 5,318,464 | $ | 3,938,000 | |||||||
Class A Units (5,000 units) | 500,000 | — | |||||||||||||
5,407,351 | 5,818,464 | 3,938,000 | |||||||||||||
My Alarm Center, LLC (2%)* | Security Company | Subordinated Note (12% Cash, 2.5% PIK, Due 09/17) | 8,033,880 | 7,956,670 | 7,956,670 | ||||||||||
Preferred Units (2,000,000 units) | 2,000,000 | 2,000,000 | |||||||||||||
8,033,880 | 9,956,670 | 9,956,670 | |||||||||||||
National Investment Managers Inc. (3%)* | Retirement Plan Administrator | Subordinated Note (12% Cash, 5% PIK, Due 09/16) | 12,154,073 | 11,933,723 | 11,933,723 | ||||||||||
Preferred A Units (90,000 units) | 900,000 | 653,000 | |||||||||||||
Common Units (10,000 units) | 100,000 | — | |||||||||||||
12,154,073 | 12,933,723 | 12,586,723 | |||||||||||||
Novolyte Technologies, Inc. (0%)* | Specialty Manufacturing | Common Units (24,522 units) | 43,905 | 178,801 | |||||||||||
43,905 | 178,801 | ||||||||||||||
Pomeroy IT Solutions (2%)* | Information Technology Outsourcing Services | Subordinated Notes (13% Cash, 2% PIK, Due 02/16) | 10,336,967 | 10,144,990 | 10,144,990 | ||||||||||
10,336,967 | 10,144,990 | 10,144,990 | |||||||||||||
PowerDirect Marketing, LLC (2%)* | Marketing Services | Subordinated Note (12% Cash, 2% PIK, Due 05/16) | 7,721,438 | 7,097,237 | 7,097,237 | ||||||||||
Common Unit Purchase Warrants | 590,200 | 1,241,000 | |||||||||||||
7,721,438 | 7,687,437 | 8,338,237 | |||||||||||||
ROM Acquisition Corporation (2%)* | Military and Industrial Vehicles Equipment Manufacturing | Subordinated Note (12% Cash, 3% PIK, Due 3/17) | 8,631,886 | 8,553,307 | 8,553,307 | ||||||||||
8,631,886 | 8,553,307 | 8,553,307 | |||||||||||||
Sheplers, Inc. (3%)* | Western Apparel Retailer | Subordinated Note (13.15% Cash, Due 12/16) | 8,750,000 | 8,555,784 | 8,555,784 | ||||||||||
Subordinated Note (10% Cash, 7% PIK, Due 12/17) | 3,958,152 | 3,892,182 | 3,892,182 | ||||||||||||
12,708,152 | 12,447,966 | 12,447,966 | |||||||||||||
SRC, Inc. (1%)* | Specialty Chemical Manufacturer | Subordinated Notes (12% Cash, 2% PIK, Due 09/14) | 5,993,701 | 5,807,681 | 5,807,681 | ||||||||||
Common Stock Purchase Warrants | 123,800 | — | |||||||||||||
5,993,701 | 5,931,481 | 5,807,681 | |||||||||||||
Stella Environmental Services, LLC (1%)* | Waste Transfer Stations | Subordinated Notes (12% Cash, 3% PIK, Due 2/17) | 5,871,313 | 5,737,266 | 5,737,266 | ||||||||||
Common Stock Purchase Warrants | 20,000 | 427,000 | |||||||||||||
5,871,313 | 5,757,266 | 6,164,266 | |||||||||||||
Syrgis Holdings, Inc. (0%)* | Specialty Chemical Manufacturer | Class C Units (2,114 units) | 111,037 | 201,281 | |||||||||||
111,037 | 201,281 | ||||||||||||||
The Krystal Company (4%)* | Quick Serve Restaurants | Subordinated Note (12% Cash, 3% PIK, Due 6/17) | 12,419,455 | 12,192,337 | 12,192,337 | ||||||||||
Class A Units of Limited Partnership (2,000 units) | 2,000,000 | 2,853,000 | |||||||||||||
12,419,455 | 14,192,337 | 15,045,337 | |||||||||||||
TMR Automotive Service Supply, LLC (1%)* | Automotive Supplies | Subordinated Note (12% Cash, 1% PIK, Due 03/16) | 4,750,000 | 4,526,014 | 4,526,014 | ||||||||||
Unit Purchase Warrant (329,518 units) | 195,000 | 371,000 | |||||||||||||
4,750,000 | 4,721,014 | 4,897,014 | |||||||||||||
Tomich Brothers, LLC (2%)* | Squid and Wetfish Processor and Distributor | Subordinated Note (12% Cash, 3% PIK, Due 04/16) | 7,092,064 | 6,966,164 | 6,966,164 | ||||||||||
Royalty Rights | — | — | |||||||||||||
7,092,064 | 6,966,164 | 6,966,164 | |||||||||||||
Top Knobs USA, Inc. (3%)* | Hardware Designer and Distributor | Subordinated Note (12% Cash, 4.5% PIK, Due 05/17) | 10,726,884 | 10,599,249 | 10,599,249 | ||||||||||
Common Stock (26,593 shares) | 750,000 | 987,000 | |||||||||||||
10,726,884 | 11,349,249 | 11,586,249 | |||||||||||||
Trinity Consultants Holdings, Inc. (2%)* | Air Quality Consulting Services | Subordinated Note (12% Cash, 2.5% PIK, Due 11/17) | 7,354,981 | 7,223,909 | 7,223,909 | ||||||||||
Series A Preferred Stock (10,000 units) | 950,000 | 1,108,000 | |||||||||||||
Common Stock (55,556 units) | 50,000 | 377,000 | |||||||||||||
7,354,981 | 8,223,909 | 8,708,909 | |||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 30, 2012 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
TrustHouse Services Group, Inc. (7%)* | Food Management Services | Subordinated Note (12% Cash, 2.25% PIK, Due 06/19) | $ | 25,189,322 | $ | 24,898,388 | $ | 24,898,388 | ||||||||
Class A Units (1,557 units) | 512,124 | 1,502,000 | ||||||||||||||
Class B Units (82 units) | 26,954 | 61,000 | ||||||||||||||
Class E Units (838 units) | 750,406 | 863,000 | ||||||||||||||
25,189,322 | 26,187,872 | 27,324,388 | ||||||||||||||
Tulsa Inspection Resources, Inc. (2%)* | Pipeline Inspection Services | Subordinated Note (14%-17.5% Cash, Due 03/14) | 5,810,588 | 5,644,994 | 5,644,994 | |||||||||||
Common Units (2 units) | 337,925 | 579,000 | ||||||||||||||
Common Stock Warrants (8 shares) | 321,000 | 2,220,000 | ||||||||||||||
5,810,588 | 6,303,919 | 8,443,994 | ||||||||||||||
Twin-Star International, Inc. (1%)* | Consumer Home Furnishings Manufacturer | Subordinated Note (12% Cash, 1% PIK, Due 04/14) | 4,500,000 | 4,487,507 | 4,487,507 | |||||||||||
Senior Note (4.5%, Due 04/13) | 1,020,671 | 1,020,671 | 1,020,671 | |||||||||||||
5,520,671 | 5,508,178 | 5,508,178 | ||||||||||||||
United Biologics, LLC (3%)* | Allergy Immunotherapy | Subordinated Note (12% Cash, 2% PIK, Due 03/17) | 10,117,252 | 9,157,562 | 9,157,562 | |||||||||||
Class A Common Stock (177,935 shares) | 1,999,989 | 2,777,000 | ||||||||||||||
Class A & Class B Unit Purchase Warrants | 838,117 | 933,000 | ||||||||||||||
10,117,252 | 11,995,668 | 12,867,562 | ||||||||||||||
Wholesale Floors, Inc. (1%)* | Commercial Services | Subordinated Note (12.5% Cash, 3.5% PIK, Due 06/14) | 3,787,038 | 3,724,767 | 3,724,767 | |||||||||||
Membership Interest Purchase Warrant (4.0%) | 132,800 | — | ||||||||||||||
3,787,038 | 3,857,567 | 3,724,767 | ||||||||||||||
Workforce Software, LLC (2%)* | Software Provider | Subordinated Note (11% Cash, 3% PIK, Due 11/16) | 7,000,000 | 6,175,220 | 6,175,220 | |||||||||||
Class B Preferred Units (1,020,000 units) | 1,020,000 | 1,107,000 | ||||||||||||||
Common Unit Purchase Warrants (2,224,561 units) | 782,300 | 1,870,000 | ||||||||||||||
7,000,000 | 7,977,520 | 9,152,220 | ||||||||||||||
WSO Holdings, LP (5%)* | Organic/Fair Trade Sugar, Syrup, Nectar and Honey Producer | Subordinated Note (12% Cash, 2% PIK, Due 10/17) | 20,198,267 | 19,918,210 | 19,918,210 | |||||||||||
Common Points (3,000 points) | 3,000,000 | 3,000,000 | ||||||||||||||
20,198,267 | 22,918,210 | 22,918,210 | ||||||||||||||
Xchange Technology Group, LLC (1%)* | Used and Refurbished IT Asset Supplier | Subordinated (8% Cash, Due 06/15) | 6,024,000 | 5,904,000 | 3,041,000 | |||||||||||
Royalty Rights | — | — | ||||||||||||||
6,024,000 | 5,904,000 | 3,041,000 | ||||||||||||||
Yellowstone Landscape Group, Inc. (3%)* | Landscaping Services | Subordinated Note (12% Cash, 3% PIK, Due 04/14) | 13,106,756 | 13,010,641 | 13,010,641 | |||||||||||
13,106,756 | 13,010,641 | 13,010,641 | ||||||||||||||
Subtotal Non–Control / Non–Affiliate Investments | 460,608,480 | 485,599,055 | 498,027,652 | |||||||||||||
Affiliate Investments: | ||||||||||||||||
All Aboard America! Holdings Inc. (2%)* | Motor Coach Operator | Subordinated Note (12% Cash, 3% PIK, Due (10/17) | 8,565,333 | 8,401,261 | 8,401,261 | |||||||||||
Convertible Preferred Interest in LLC | 1,500,000 | 1,500,000 | ||||||||||||||
8,565,333 | 9,901,261 | 9,901,261 | ||||||||||||||
American De-Rosa Lamparts, LLC and Hallmark Lighting (1%)* | Wholesale and Distribution | Subordinated Note (12% Cash, 6% PIK, Due 10/13) | 6,339,068 | 5,544,163 | 5,544,163 | |||||||||||
Membership Units (6,516 units) | 620,653 | — | ||||||||||||||
6,339,068 | 6,164,816 | 5,544,163 | ||||||||||||||
AP Services, Inc. (2%)* | Fluid Sealing Supplies and Services | Subordinated Note (12% Cash, 2% PIK, Due 09/15) | 4,418,235 | 4,340,623 | 4,340,623 | |||||||||||
Class A Units (933 units) | 933,333 | 1,913,000 | ||||||||||||||
Class B Units (496 units) | — | 441,000 | ||||||||||||||
4,418,235 | 5,273,956 | 6,694,623 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 30, 2012 | |||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | ||||||||||
Asset Point, LLC (2%)* | Asset Management Software Provider | Senior Note (12% Cash, 4% PIK, Due 03/13) | $ | 6,241,802 | $ | 6,228,938 | $ | 6,228,938 | |||||||
Senior Note (12% Cash, 2% PIK, Due 07/15) | 627,037 | 627,037 | 569,000 | ||||||||||||
Subordinated Note (7% Cash, Due 03/13) | 941,798 | 941,798 | 888,000 | ||||||||||||
Membership Units (1,000,000 units) | 8,203 | 464,000 | |||||||||||||
Options to Purchase Membership Units (342,407 units) | 500,000 | 226,000 | |||||||||||||
Membership Unit Warrants (356,506 units) | — | — | |||||||||||||
7,810,637 | 8,305,976 | 8,375,938 | |||||||||||||
Axxiom Manufacturing, Inc. (0%)* | Industrial Equipment Manufacturer | Common Stock (136,400 shares) | 200,000 | 1,477,000 | |||||||||||
Common Stock Warrant (4,000 shares) | — | 43,000 | |||||||||||||
200,000 | 1,520,000 | ||||||||||||||
Captek Softgel International, Inc. (2%)* | Nutraceutical Manufacturer | Subordinated Note (12% Cash, 4% PIK, Due 08/16) | 8,532,545 | 8,406,437 | 8,406,437 | ||||||||||
Class A Units (80,000 units) | 800,000 | 633,000 | |||||||||||||
8,532,545 | 9,206,437 | 9,039,437 | |||||||||||||
CIS Secure Computing Inc. (2%)* | Secure Communications and Computing Solutions Provider | Subordinated Note (12% Cash, 2% PIK, Due 06/17) | 10,076,038 | 9,886,791 | 9,886,791 | ||||||||||
Common Stock (84 shares) | 502,320 | 502,320 | |||||||||||||
10,076,038 | 10,389,111 | 10,389,111 | |||||||||||||
Dyson Corporation (1%)* | Custom Forging and Fastener Supplies | Class A Units (1,000,000 units) | 1,000,000 | 3,819,000 | |||||||||||
1,000,000 | 3,819,000 | ||||||||||||||