Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

__________________________________________________________

Form 10-Q

__________________________________________________________

(Mark One)

ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 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  ý    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	ý
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  ý

The number of shares outstanding of the registrant’s Common Stock on November 5, 2012 was 27,320,385.

---

Table of Contents

TRIANGLE CAPITAL CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Consolidated Balance Sheet as of September 30, 2012 and Consolidated Balance Sheet as of December 31, 2011	3
	Unaudited Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2012 and 2011	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Nine Months Ended September 30, 2012 and 2011	5
	Unaudited Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2012 and 2011	6
	Unaudited Consolidated Schedule of Investments as of September 30, 2012	7
	Consolidated Schedule of Investments as of December 31, 2011	13
	Notes to Unaudited Consolidated Financial Statements	18
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	42
Item 4.	Controls and Procedures	43
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	44
Item 1A.	Risk Factors	44
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
Item 3.	Defaults Upon Senior Securities	44
Item 4.	Mine Safety Disclosures	44
Item 5.	Other Information	44
Item 6.	Exhibits	45
Signatures		46
Exhibits

2

---

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

TRIANGLE CAPITAL CORPORATION

Consolidated Balance Sheets

 

	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

See accompanying notes.

3

---

Table of Contents

TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Operations

	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

See accompanying notes.

4

---

Table of Contents

TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Changes in Net Assets

 

	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

See accompanying notes.

5

---

Table of Contents

TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows

 

	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

See accompanying notes.

6

---

Table of Contents

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

7

---

Table of Contents

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

8

---

Table of Contents

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

9

---

Table of Contents

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

10

---

Table of Contents

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