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. | ||
March 31, 2013 | December 31, 2012 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Investments at fair value: | |||||||
Non-Control / Non-Affiliate investments (cost of $571,951,156 and $565,737,092 at March 31, 2013 and December 31, 2012, respectively) | $ | 587,495,700 | $ | 579,078,939 | |||
Affiliate investments (cost of $124,090,454 and $123,019,204 at March 31, 2013 and December 31, 2012, respectively) | 123,444,532 | 123,408,445 | |||||
Control investments (cost of $11,586,932 and $11,474,208 at March 31, 2013 and December 31, 2012, respectively) | 4,585,685 | 4,315,339 | |||||
Total investments at fair value | 715,525,917 | 706,802,723 | |||||
Cash and cash equivalents | 37,041,674 | 72,300,423 | |||||
Interest and fees receivable | 4,131,647 | 2,650,178 | |||||
Prepaid expenses and other current assets | 593,736 | 403,123 | |||||
Deferred financing fees | 11,521,363 | 12,323,430 | |||||
Property and equipment, net | 56,583 | 55,535 | |||||
Total assets | $ | 768,870,920 | $ | 794,535,412 | |||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 1,707,249 | $ | 6,405,570 | |||
Interest payable | 1,065,668 | 3,136,574 | |||||
Taxes payable | 234,796 | 3,210,989 | |||||
Deferred income taxes | 901,067 | 1,342,456 | |||||
Notes | 149,500,000 | 149,500,000 | |||||
SBA-guaranteed debentures payable | 193,148,838 | 213,604,579 | |||||
Total liabilities | 346,557,618 | 377,200,168 | |||||
Net Assets: | |||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 27,563,375 and 27,284,798 shares issued and outstanding as of March 31, 2013 and December 31, 2012, respectively) | 27,563 | 27,285 | |||||
Additional paid-in-capital | 404,748,852 | 403,322,097 | |||||
Investment income in excess of distributions | 6,714,859 | 6,783,161 | |||||
Accumulated realized gains on investments | 3,825,722 | 1,972,940 | |||||
Net unrealized appreciation of investments | 6,996,306 | 5,229,761 | |||||
Total net assets | 422,313,302 | 417,335,244 | |||||
Total liabilities and net assets | $ | 768,870,920 | $ | 794,535,412 | |||
Net asset value per share | $ | 15.32 | $ | 15.30 |
Three Months Ended | Three Months Ended | |||||||
March 31, 2013 | March 31, 2012 | |||||||
Investment income: | ||||||||
Loan interest, fee and dividend income: | ||||||||
Non-Control / Non-Affiliate investments | $ | 17,187,501 | $ | 12,963,602 | ||||
Affiliate investments | 2,963,029 | 2,717,149 | ||||||
Control investments | 49,371 | 59,773 | ||||||
Total loan interest, fee and dividend income | 20,199,901 | 15,740,524 | ||||||
Payment-in-kind interest income: | ||||||||
Non-Control / Non-Affiliate investments | 3,250,548 | 2,587,267 | ||||||
Affiliate investments | 958,379 | 654,233 | ||||||
Control investments | 5,867 | 19,971 | ||||||
Total payment-in-kind interest income | 4,214,794 | 3,261,471 | ||||||
Interest income from cash and cash equivalent investments | 51,240 | 109,858 | ||||||
Total investment income | 24,465,935 | 19,111,853 | ||||||
Expenses: | ||||||||
Interest and other debt financing fees | 5,111,512 | 3,310,737 | ||||||
General and administrative expenses | 4,120,958 | 3,607,267 | ||||||
Total expenses | 9,232,470 | 6,918,004 | ||||||
Net investment income | 15,233,465 | 12,193,849 | ||||||
Net realized gains: | ||||||||
Net realized gain on investments – Non-Control / Non-Affiliate | 578,782 | — | ||||||
Net realized gain on investments – Affiliate | 1,274,000 | — | ||||||
Net unrealized appreciation of investments | 1,766,545 | 621,471 | ||||||
Total net gain on investments | 3,619,327 | 621,471 | ||||||
Loss on extinguishment of debt | (412,673 | ) | (205,043 | ) | ||||
Income tax benefit (provision) | (20,303 | ) | 7,231 | |||||
Net increase in net assets resulting from operations | $ | 18,419,816 | $ | 12,617,508 | ||||
Net investment income per share—basic and diluted | $ | 0.56 | $ | 0.49 | ||||
Net increase in net assets resulting from operations per share—basic and diluted | $ | 0.67 | $ | 0.50 | ||||
Dividends declared per common share | $ | 0.54 | $ | 0.47 | ||||
Weighted average number of shares outstanding—basic and diluted | 27,433,290 | 25,075,300 |
Common Stock | Additional Paid In Capital | Investment Income in Excess of Distributions | Accumulated Realized Gains on Investments | Net Unrealized Appreciation of Investments | Total Net Assets | |||||||||||||||||||||
Number of Shares | Par Value | |||||||||||||||||||||||||
Balance, December 31, 2011 | 22,774,726 | $ | 22,775 | $ | 318,297,269 | $ | 6,847,486 | $ | 1,011,649 | $ | 8,107,776 | $ | 334,286,955 | |||||||||||||
Net investment income | — | — | — | 12,193,849 | — | — | 12,193,849 | |||||||||||||||||||
Stock-based compensation | — | — | 648,750 | — | — | — | 648,750 | |||||||||||||||||||
Net unrealized appreciation of investments | — | — | — | — | — | 621,471 | 621,471 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (205,043 | ) | — | — | (205,043 | ) | |||||||||||||||||
Income tax benefit | — | — | — | 7,231 | — | — | 7,231 | |||||||||||||||||||
Dividends/distributions declared | 52,717 | 52 | 1,028,467 | (12,788,904 | ) | — | — | (11,760,385 | ) | |||||||||||||||||
Public offering of common stock | 4,255,000 | 4,255 | 77,243,819 | — | — | — | 77,248,074 | |||||||||||||||||||
Issuance of restricted stock | 227,631 | 228 | (228 | ) | — | — | — | — | ||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (46,923 | ) | (47 | ) | (897,590 | ) | — | — | — | (897,637 | ) | |||||||||||||||
Balance, March 31, 2012 | 27,263,151 | $ | 27,263 | $ | 396,320,487 | $ | 6,054,619 | $ | 1,011,649 | $ | 8,729,247 | $ | 412,143,265 |
Common Stock | Additional Paid In Capital | Investment Income in Excess of Distributions | Accumulated Realized Gains on Investments | Net Unrealized Appreciation of Investments | Total Net Assets | |||||||||||||||||||||
Number of Shares | Par Value | |||||||||||||||||||||||||
Balance, December 31, 2012 | 27,284,798 | $ | 27,285 | $ | 403,322,097 | $ | 6,783,161 | $ | 1,972,940 | $ | 5,229,761 | $ | 417,335,244 | |||||||||||||
Net investment income | — | — | — | 15,233,465 | — | — | 15,233,465 | |||||||||||||||||||
Stock-based compensation | — | — | 630,006 | — | — | — | 630,006 | |||||||||||||||||||
Net realized gain on investments | — | — | — | — | 1,852,782 | (1,274,000 | ) | 578,782 | ||||||||||||||||||
Net unrealized appreciation of investments | — | — | — | — | — | 3,040,545 | 3,040,545 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (412,673 | ) | — | — | (412,673 | ) | |||||||||||||||||
Income tax provision | — | — | — | (20,303 | ) | — | — | (20,303 | ) | |||||||||||||||||
Dividends/distributions declared | 28,577 | 28 | 796,999 | (14,868,791 | ) | — | — | (14,071,764 | ) | |||||||||||||||||
Issuance of restricted stock | 250,000 | 250 | (250 | ) | — | — | — | — | ||||||||||||||||||
Balance, March 31, 2013 | 27,563,375 | $ | 27,563 | $ | 404,748,852 | $ | 6,714,859 | $ | 3,825,722 | $ | 6,996,306 | $ | 422,313,302 |
Three Months Ended | Three Months Ended | ||||||
March 31, 2013 | March 31, 2012 | ||||||
Cash flows from operating activities: | |||||||
Net increase in net assets resulting from operations | $ | 18,419,816 | $ | 12,617,508 | |||
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | |||||||
Purchases of portfolio investments | (10,259,545 | ) | (41,952,989 | ) | |||
Repayments received/sales of portfolio investments | 9,274,946 | 8,253,844 | |||||
Loan origination and other fees received | 255,159 | 666,420 | |||||
Net realized gain on investments | (1,852,782 | ) | — | ||||
Net unrealized appreciation of investments | (1,325,156 | ) | (768,682 | ) | |||
Deferred income taxes | (441,389 | ) | 147,211 | ||||
Payment-in-kind interest accrued, net of payments received | (3,685,061 | ) | (2,704,362 | ) | |||
Amortization of deferred financing fees | 389,394 | 222,917 | |||||
Loss on extinguishment of debt | 412,673 | 205,043 | |||||
Accretion of loan origination and other fees | (734,094 | ) | (476,512 | ) | |||
Accretion of loan discounts | (396,661 | ) | (374,341 | ) | |||
Accretion of discount on SBA-guaranteed debentures payable | 44,259 | 43,629 | |||||
Depreciation expense | 9,172 | 7,349 | |||||
Stock-based compensation | 630,006 | 648,750 | |||||
Changes in operating assets and liabilities: | |||||||
Interest and fees receivable | (1,481,469 | ) | (861,679 | ) | |||
Prepaid expenses | (190,613 | ) | 153,192 | ||||
Accounts payable and accrued liabilities | (4,698,321 | ) | (2,606,598 | ) | |||
Interest payable | (2,070,906 | ) | (2,316,068 | ) | |||
Taxes payable | (2,976,193 | ) | (1,198,973 | ) | |||
Net cash used in operating activities | (676,765 | ) | (30,294,341 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (10,220 | ) | (9,656 | ) | |||
Net cash used in investing activities | (10,220 | ) | (9,656 | ) | |||
Cash flows from financing activities: | |||||||
Repayments of SBA-guaranteed debentures payable | (20,500,000 | ) | (10,410,000 | ) | |||
Repayments of credit facility | — | (15,000,000 | ) | ||||
Proceeds from notes | — | 69,000,000 | |||||
Financing fees paid | — | (2,230,237 | ) | ||||
Proceeds from public stock offerings, net of expenses | — | 77,248,074 | |||||
Common stock withheld for payroll taxes upon vesting of restricted stock | — | (897,637 | ) | ||||
Cash dividends paid | (14,071,764 | ) | (11,760,385 | ) | |||
Net cash provided by (used in) financing activities | (34,571,764 | ) | 105,949,815 | ||||
Net increase (decrease) in cash and cash equivalents | (35,258,749 | ) | 75,645,818 | ||||
Cash and cash equivalents, beginning of period | 72,300,423 | 66,868,340 | |||||
Cash and cash equivalents, end of period | $ | 37,041,674 | $ | 142,514,158 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 6,594,078 | $ | 5,289,789 | |||
Summary of non-cash financing transactions: | |||||||
Dividends paid through DRIP share issuances | $ | 797,027 | $ | 1,028,519 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments March 31, 2013 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Non–Control / Non–Affiliate Investments: | ||||||||||||||||
Agilex Flavors & Fragrances, Inc. (3%)* | Custom Fragrance Producers | Subordinated Note (12% Cash, 1.5% PIK, Due 06/19) | $ | 12,553,671 | $ | 12,310,156 | $ | 12,310,156 | ||||||||
Common Units (1,250 units) | 1,250,000 | 1,250,000 | ||||||||||||||
12,553,671 | 13,560,156 | 13,560,156 | ||||||||||||||
Ambient Air Corporation (“AA”) and Peaden-Hobbs Mechanical, LLC (“PHM”) (1%)* | Specialty Trade Contractors | Subordinated Note-AA (15% Cash, 3% PIK, Due 06/13) | 4,077,549 | 4,073,083 | 4,073,083 | |||||||||||
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 | 220,000 | ||||||||||||||
4,090,406 | 4,356,872 | 4,434,511 | ||||||||||||||
Aramsco, Inc. (0%)* | Environmental Emergency Preparedness Products Distributor | Subordinated Note (12% Cash, 2% PIK, Due 03/14) | 1,180,506 | 1,119,533 | 1,119,533 | |||||||||||
1,180,506 | 1,119,533 | 1,119,533 | ||||||||||||||
Assurance Operations Corporation (0%)* | Metal Fabrication | Common Stock (517 shares) | 516,867 | 961,000 | ||||||||||||
516,867 | 961,000 | |||||||||||||||
Audio and Video Labs Holdings, Inc. (3%)* | Manufacturer and Distributor for Independent Artists and Authors | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 13,068,012 | 12,816,526 | 12,816,526 | |||||||||||
Common Units (134 units) | 1,300,000 | 1,300,000 | ||||||||||||||
13,068,012 | 14,116,526 | 14,116,526 | ||||||||||||||
Botanical Laboratories, Inc. (0%)* | Nutritional Supplement Manufacturing and Distribution | Common Unit Warrants (998,680 units) | 474,600 | 1,031,000 | ||||||||||||
474,600 | 1,031,000 | |||||||||||||||
Capital Contractors, Inc. (2%)* | Janitorial and Facilities Maintenance Services | Subordinated Notes (12% Cash, 2% PIK, Due 12/15) | 9,420,689 | 9,002,754 | 9,002,754 | |||||||||||
Common Stock Warrants (20 shares) | 492,000 | 448,000 | ||||||||||||||
9,420,689 | 9,494,754 | 9,450,754 | ||||||||||||||
Carolina Beverage Group, LLC (1%)* | Beverage Manufacturing and Packaging | Class A Units (11,974 units) | 1,077,615 | 1,400,000 | ||||||||||||
Class B Units (11,974 units) | 119,735 | 1,360,000 | ||||||||||||||
1,197,350 | 2,760,000 | |||||||||||||||
Charter Facilities Services, Inc. (1%)* | Retail, Restaurant, and Commercial Facilities Maintenance | Subordinated Note (9% Cash, 4% PIK, Due 07/18) | 5,152,072 | 5,073,130 | 5,073,130 | |||||||||||
Convertible Preferred Units (2,500 units) | 250,000 | 279,000 | ||||||||||||||
5,152,072 | 5,323,130 | 5,352,130 | ||||||||||||||
Chromaflo Technologies, LLC (5%)* | Colorant Manufacturer and Distributor | Subordinated Note (12% Cash, 2% PIK, Due 10/17) | 16,549,234 | 16,268,865 | 16,268,865 | |||||||||||
Preferred A Units (22,561 units) | 2,256,098 | 2,937,000 | ||||||||||||||
16,549,234 | 18,524,963 | 19,205,865 | ||||||||||||||
Comverge, Inc. (4%)* | Provider of Intelligent Energy Management Solutions | Subordinated Note (12% Cash, 3% PIK, Due 05/18) | 15,155,319 | 14,874,084 | 14,874,084 | |||||||||||
Preferred Units (900 units) | 900,000 | 900,000 | ||||||||||||||
Common Units (1,000,000 units) | 100,000 | 100,000 | ||||||||||||||
15,155,319 | 15,874,084 | 15,874,084 | ||||||||||||||
Continental Anesthesia Management, LLC (2%)* | Physicians Management Services | Senior Note (14.0% Cash, Due 11/14) | 9,950,000 | 9,765,167 | 8,831,000 | |||||||||||
Warrant (263 shares) | 276,100 | — | ||||||||||||||
9,950,000 | 10,041,267 | 8,831,000 | ||||||||||||||
CRS Reprocessing, LLC (6%)* | Fluid Reprocessing Services | Subordinated Note (12% Cash, 2% PIK, Due 11/15) | 11,827,272 | 11,617,433 | 11,617,433 | |||||||||||
Subordinated Note (12% Cash, 2% PIK, Due 11/15) | 13,043,263 | 11,899,345 | 11,899,345 | |||||||||||||
Series C Preferred Units (30 units) | 288,342 | 430,000 | ||||||||||||||
Common Unit Warrant (664 units) | 1,759,556 | 2,849,000 | ||||||||||||||
Series D Preferred Units (16 units) | 107,074 | 171,000 | ||||||||||||||
24,870,535 | 25,671,750 | 26,966,778 | ||||||||||||||
DataSource Incorporated (2%)* | Print Supply Chain Management Services | Subordinated Note (12% Cash, 2% PIK, Due 01/18) | 8,627,184 | 8,474,391 | 8,474,391 | |||||||||||
Common Units (47 units) | 1,000,000 | 1,089,000 | ||||||||||||||
8,627,184 | 9,474,391 | 9,563,391 | ||||||||||||||
DCWV Acquisition Corporation (1%)* | Arts & Crafts and Home Decor Products Designer and Supplier | Subordinated Note (12% Cash, 3% PIK, Due 09/17) | 6,100,207 | 5,989,273 | 5,346,000 | |||||||||||
6,100,207 | 5,989,273 | 5,346,000 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments March 31, 2013 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
DLR Restaurants, LLC (3%)* | Restaurant | Subordinated Note (12% Cash, 2% PIK, Due 03/16) | $ | 12,495,114 | $ | 12,337,031 | $ | 12,337,031 | ||||||||
Subordinated Note (12% Cash, 4% PIK, Due 03/16) | 791,102 | 776,102 | 776,102 | |||||||||||||
Royalty Rights | — | 44,000 | ||||||||||||||
13,286,216 | 13,113,133 | 13,157,133 | ||||||||||||||
Eckler's Holdings, Inc. (2%)* | Restoration Parts and Accessories for Classic Cars and Trucks | Subordinated Note (11% Cash, 4% PIK, Due 07/18) | 6,870,925 | 6,717,698 | 6,717,698 | |||||||||||
Common Stock (18,029 shares) | 183,562 | — | ||||||||||||||
Preferred Stock A (1,596 shares) | 1,596,126 | 1,638,003 | ||||||||||||||
6,870,925 | 8,497,386 | 8,355,701 | ||||||||||||||
Electronic Systems Protection, Inc. (1%)* | Power Protection Systems Manufacturing | Subordinated Note (12% Cash, 2% PIK, Due 12/15) | 4,267,913 | 4,242,543 | 4,242,543 | |||||||||||
Common Stock (570 shares) | 285,000 | 308,000 | ||||||||||||||
4,267,913 | 4,527,543 | 4,550,543 | ||||||||||||||
Foodstate, Inc. (1%)* | Nutritional Supplement Manufacturing and Distribution | Subordinated Note (12% Cash, 3.8% PIK, Due 10/16) | 5,531,727 | 5,454,198 | 5,454,198 | |||||||||||
5,531,727 | 5,454,198 | 5,454,198 | ||||||||||||||
Frozen Specialties, Inc. (1%)* | Frozen Foods Manufacturer | Subordinated Note (13% Cash, 5% PIK, Due 05/16) | 6,324,276 | 6,277,364 | 6,277,364 | |||||||||||
6,324,276 | 6,277,364 | 6,277,364 | ||||||||||||||
Garden Fresh Restaurant Corp. (0%)* | Restaurant | Membership Units (5,000 units) | 500,000 | 62,000 | ||||||||||||
500,000 | 62,000 | |||||||||||||||
Glencoe Business Services Holdings (5%)* | Business Process Outsourcing Provider | Subordinated Note (12% Cash, 2.5% PIK, Due 06/18) | 20,126,654 | 19,739,752 | 19,739,752 | |||||||||||
20,126,654 | 19,739,752 | 19,739,752 | ||||||||||||||
Grindmaster-Cecilware Corp. (1%)* | Food Services Equipment Manufacturer | Subordinated Note (12% Cash, 6% PIK, Due 04/16) | 6,768,491 | 6,718,573 | 5,997,000 | |||||||||||
6,768,491 | 6,718,573 | 5,997,000 | ||||||||||||||
Hatch Chile Co., LLC (1%)* | Food Products Distributor | Senior Note (19% Cash, Due 07/15) | 3,395,454 | 3,331,938 | 3,331,938 | |||||||||||
Subordinated Note (14% Cash, Due 07/15) | 754,546 | 660,978 | 660,978 | |||||||||||||
Unit Purchase Warrant (5,265 units) | 149,800 | 285,000 | ||||||||||||||
4,150,000 | 4,142,716 | 4,277,916 | ||||||||||||||
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) | 11,349,166 | 10,638,781 | 10,425,000 | |||||||||||
Subordinated Note-HPH (4% Cash, 6% PIK, Due 03/16) | 1,384,898 | 1,303,361 | — | |||||||||||||
Senior Subordinated Note-HP (14% Cash, 2% PIK, Due 03/16) | 1,367,897 | 1,344,580 | 1,344,580 | |||||||||||||
Preferred Units (0%) | 1,100,000 | — | ||||||||||||||
Preferred Unit Purchase Warrants (25%) | — | — | ||||||||||||||
Royalty Rights | — | — | ||||||||||||||
14,101,961 | 14,386,722 | 11,769,580 | ||||||||||||||
Infrastructure Corporation of America, Inc. (3%)* | Roadway Maintenance, Repair and Engineering Services | Subordinated Note (12% Cash, 2% PIK, Due 09/18) | 11,022,936 | 9,371,776 | 9,371,776 | |||||||||||
Common Stock Purchase Warrant (417,593 shares) | 2,411,000 | 2,862,000 | ||||||||||||||
11,022,936 | 11,782,776 | 12,233,776 | ||||||||||||||
Inland Pipe Rehabilitation Holding Company LLC (5%)* | Cleaning and Repair Services | Subordinated Note (13% Cash, 2.5% PIK, Due 12/16) | 20,927,777 | 20,701,499 | 20,701,499 | |||||||||||
Membership Interest Purchase Warrant (3.0%) | 853,500 | 2,328,000 | ||||||||||||||
20,927,777 | 21,554,999 | 23,029,499 | ||||||||||||||
IOS Acquisitions, Inc. (4%)* | Provider of Oil Country Tubular Goods Inspections and Repair Services | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 17,089,881 | 16,761,015 | 16,761,015 | |||||||||||
Common Units (7,314 Class A Units) | 1,699,847 | 1,699,847 | ||||||||||||||
17,089,881 | 18,460,862 | 18,460,862 | ||||||||||||||
Library Systems & Services, LLC (1%)* | Municipal Business Services | Subordinated Note (12.5% Cash, 4.5% PIK, Due 06/15) | 4,256,702 | 4,173,803 | 4,173,803 | |||||||||||
Common Stock Warrants (112 shares) | 58,995 | 1,267,000 | ||||||||||||||
4,256,702 | 4,232,798 | 5,440,803 | ||||||||||||||
Magpul Industries Corp. (5%)* | Firearm Accessories Manufacturer and Distributor | Subordinated Note (12% Cash, 3% PIK, Due 03/17) | 13,300,000 | 13,090,346 | 13,090,346 | |||||||||||
Preferred Units (1,470 units) | 1,470,000 | 1,812,000 | ||||||||||||||
Common Units (30,000 units) | 30,000 | 4,433,000 | ||||||||||||||
13,300,000 | 14,590,346 | 19,335,346 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments March 31, 2013 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Marine Acquisition Corp. (3%)* | Boat Steering System and Driver Control Provider | Subordinated Note (11.50% Cash, 2% PIK, Due 05/17) | $ | 12,000,000 | $ | 11,752,071 | $ | 11,752,071 | ||||||||
12,000,000 | 11,752,071 | 11,752,071 | ||||||||||||||
Media Storm, LLC (2%)* | Marketing Services | Subordinated Note (12% Cash, 2% PIK, Due 10/17) | 8,096,946 | 8,027,916 | 8,027,916 | |||||||||||
Membership Units (1,216,204 units) | 1,176,957 | 1,390,000 | ||||||||||||||
8,096,946 | 9,204,873 | 9,417,916 | ||||||||||||||
Media Temple, Inc. (5%)* | Web Hosting Services | Subordinated Note (12% Cash, 3% PIK, Due 04/15) | 11,000,000 | 10,906,578 | 10,906,578 | |||||||||||
Convertible Note (8% Cash, 6% PIK, Due 04/15) | 4,000,000 | 4,562,615 | 8,001,000 | |||||||||||||
Common Stock Purchase Warrant (28,000 shares) | 1,251,000 | 3,500,000 | ||||||||||||||
15,000,000 | 16,720,193 | 22,407,578 | ||||||||||||||
Micross Solutions LLC (3%)* | Provider Semiconductor Products and Services | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 10,668,476 | 10,514,683 | 10,514,683 | |||||||||||
Class A-2 Common Units (1,500,000 units) | 1,500,000 | 1,500,000 | ||||||||||||||
10,668,476 | 12,014,683 | 12,014,683 | ||||||||||||||
Minco Technology Labs, LLC (1%)* | Semiconductor Distribution | Subordinated Note (6.5% Cash, 3.5% PIK, Due 05/16) | 5,585,737 | 5,457,936 | 3,253,000 | |||||||||||
Class A Units (5,000 HoldCo. units) | 500,000 | — | ||||||||||||||
Class A Units (3,907 OpCo. units) | 3,907 | — | ||||||||||||||
5,585,737 | 5,961,843 | 3,253,000 | ||||||||||||||
My Alarm Center, LLC (3%)* | Security Company | Subordinated Note (12% Cash, 2.5% PIK, Due 09/17) | 10,135,685 | 10,044,308 | 10,044,308 | |||||||||||
Preferred Units (2,000,000 units) | 2,000,000 | 1,993,000 | ||||||||||||||
10,135,685 | 12,044,308 | 12,037,308 | ||||||||||||||
Novolyte Technologies, Inc. (0%)* | Specialty Manufacturing | Common Units (24,522 units) | 43,905 | 178,801 | ||||||||||||
43,905 | 178,801 | |||||||||||||||
Performance Health & Wellness Holdings, Inc. (3%)* | Designer and Manufacturer of Rehabilitation and Wellness Products | Subordinated Note (12% Cash, 1% PIK, Due 04/19) | 13,061,834 | 12,877,102 | 12,877,102 | |||||||||||
Class A Limited Partnership Units (15,000 units) | 1,500,000 | 1,500,000 | ||||||||||||||
13,061,834 | 14,377,102 | 14,377,102 | ||||||||||||||
PowerDirect Marketing, LLC (2%)* | Marketing Services | Subordinated Note (12% Cash, 2% PIK, Due 05/16) | 7,598,981 | 7,041,753 | 7,041,753 | |||||||||||
Common Unit Purchase Warrants | 590,200 | 1,992,000 | ||||||||||||||
7,598,981 | 7,631,953 | 9,033,753 | ||||||||||||||
ROM Acquisition Corporation (3%)* | Military and Industrial Vehicles Equipment Manufacturing | Subordinated Note (12% Cash, 3% PIK, Due 03/17) | 13,256,685 | 13,142,383 | 13,142,383 | |||||||||||
13,256,685 | 13,142,383 | 13,142,383 | ||||||||||||||
Sheplers, Inc. (3%)* | Western Apparel Retailer | Subordinated Note (13.15% Cash, Due 12/16) | 8,750,000 | 8,573,508 | 8,573,508 | |||||||||||
Subordinated Note (10% Cash, 7% PIK, Due 12/17) | 4,095,960 | 4,036,393 | 4,036,393 | |||||||||||||
12,845,960 | 12,609,901 | 12,609,901 | ||||||||||||||
Snacks Holding Corporation (3%)* | Trail Mixes and Nut Manufacturer and Marketer | Subordinated Note (12% Cash, 1% PIK, Due 11/17) | 7,170,790 | 6,866,187 | 6,866,187 | |||||||||||
Preferred A Units (22,368 units) | 2,124,957 | 3,185,000 | ||||||||||||||
Preferred B Units (10,380 units) | 986,059 | 1,546,000 | ||||||||||||||
Common Units (190,935 units) | 150,000 | 938,000 | ||||||||||||||
Common Stock Warrants (14,558 shares) | 14,558 | 91,000 | ||||||||||||||
7,170,790 | 10,141,761 | 12,626,187 | ||||||||||||||
SRC, Inc. (1%)* | Specialty Chemical Manufacturer | Subordinated Notes (12% Cash, 2% PIK, Due 12/14) | 6,053,888 | 5,906,509 | 5,567,000 | |||||||||||
Common Stock Purchase Warrants | 123,800 | — | ||||||||||||||
6,053,888 | 6,030,309 | 5,567,000 | ||||||||||||||
Stella Environmental Services, LLC (0%)* | Waste Transfer Stations | Common Stock Purchase Warrants | 20,000 | 316,000 | ||||||||||||
20,000 | 316,000 | |||||||||||||||
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 Service Restaurant | Subordinated Note (12% Cash, 3% PIK, Due 06/17) | 12,608,531 | 12,399,769 | 12,399,769 | |||||||||||
Class A Units of Limited Partnership (2,000 units) | 2,000,000 | 3,044,000 | ||||||||||||||
12,608,531 | 14,399,769 | 15,443,769 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments March 31, 2013 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
TMR Automotive Service Supply, LLC (1%)* | Automotive Supplies | Subordinated Note (12% Cash, 1% PIK, Due 03/16) | $ | 4,500,000 | $ | 4,302,625 | $ | 4,302,625 | ||||||||
Unit Purchase Warrant (316,858 units) | 195,000 | 388,000 | ||||||||||||||
4,500,000 | 4,497,625 | 4,690,625 | ||||||||||||||
Tomich Brothers, LLC (2%)* | Squid and Wetfish Processor and Distributor | Subordinated Note (12% Cash, 3% PIK, Due 04/16) | 7,200,309 | 7,089,368 | 7,089,368 | |||||||||||
Royalty Rights | — | — | ||||||||||||||
7,200,309 | 7,089,368 | 7,089,368 | ||||||||||||||
Top Knobs USA, Inc. (3%)* | Hardware Designer and Distributor | Common Stock (26,593 shares) | 750,000 | 1,115,000 | ||||||||||||
750,000 | 1,115,000 | |||||||||||||||
Trinity Consultants Holdings, Inc. (2%)* | Air Quality Consulting Services | Subordinated Note (12% Cash, 2.5% PIK, Due 11/17) | 7,448,430 | 7,326,637 | 7,326,637 | |||||||||||
Series A Preferred Stock (10,000 units) | 950,000 | 1,149,000 | ||||||||||||||
Common Stock (50,000 units) | 50,000 | 647,000 | ||||||||||||||
7,448,430 | 8,326,637 | 9,122,637 | ||||||||||||||
TrustHouse Services Group, Inc. (7%)* | Food Management Services | Subordinated Note (12% Cash, 2.25% PIK, Due 06/19) | 25,476,664 | 25,200,236 | 25,200,236 | |||||||||||
Class A Units (1,557 units) | 512,124 | 1,796,000 | ||||||||||||||
Class B Units (82 units) | 26,954 | 65,000 | ||||||||||||||
Class E Units (838 units) | 750,406 | 1,032,000 | ||||||||||||||
25,476,664 | 26,489,720 | 28,093,236 | ||||||||||||||
Tulsa Inspection Resources, Inc. (2%)* | Pipeline Inspection Services | Subordinated Note (14%-17.5% Cash, Due 03/14) | 5,810,588 | 5,696,398 | 5,696,398 | |||||||||||
Common Units (2 units) | 337,925 | 707,000 | ||||||||||||||
Common Stock Warrants (8 shares) | 321,000 | 2,717,000 | ||||||||||||||
5,810,588 | 6,355,323 | 9,120,398 | ||||||||||||||
United Biologics, LLC (2%)* | Allergy Immunotherapy | Subordinated Note (12% Cash, 2% PIK, Due 03/17) | 9,969,981 | 9,093,494 | 9,093,494 | |||||||||||
Class A Common Stock (177,935 shares) | 1,999,989 | 1,143,000 | ||||||||||||||
Class A & Class B Unit Purchase Warrants | 838,117 | 201,000 | ||||||||||||||
9,969,981 | 11,931,600 | 10,437,494 | ||||||||||||||
United Retirement Plan Consultants, Inc. (3%)* | Retirement Plan Administrator | Subordinated Note (12% Cash, 5% PIK, Due 09/16) | 12,463,243 | 12,265,497 | 12,265,497 | |||||||||||
Preferred A Units (90,000 units) | 900,000 | 931,000 | ||||||||||||||
Common Units (10,000 units) | 100,000 | — | ||||||||||||||
12,463,243 | 13,265,497 | 13,196,497 | ||||||||||||||
Wholesale Floors, Inc. (1%)* | Commercial Services | Subordinated Note (12.5% Cash, 3.5% PIK, Due 06/14) | 3,853,796 | 3,807,968 | 3,807,968 | |||||||||||
Membership Interest Purchase Warrant (4.0%) | 132,800 | — | ||||||||||||||
3,853,796 | 3,940,768 | 3,807,968 | ||||||||||||||
Workforce Software, LLC (3%)* | Software Provider | Subordinated Note (11% Cash, 5% PIK, Due 11/16) | 8,000,000 | 7,084,042 | 7,084,042 | |||||||||||
Class B Preferred Units (1,020,000 units) | 1,020,000 | 1,160,000 | ||||||||||||||
Common Unit Purchase Warrants (2,434,749 units) | 952,300 | 2,336,000 | ||||||||||||||
8,000,000 | 9,056,342 | 10,580,042 | ||||||||||||||
WSO Holdings, LP (5%)* | Organic/Fair Trade Sugar, Syrup, Nectar and Honey Producer | Subordinated Note (12% Cash, 2% PIK, Due 10/17) | 20,299,258 | 20,040,359 | 20,040,359 | |||||||||||
Common Points (3,000 points) | 3,000,000 | 2,976,000 | ||||||||||||||
20,299,258 | 23,040,359 | 23,016,359 | ||||||||||||||
Xchange Technology Group, LLC (0%)* | Used and Refurbished IT Asset Supplier | Subordinated (8% Cash, Due 06/15) | 6,144,480 | 5,904,000 | 750,000 | |||||||||||
Royalty Rights | — | — | ||||||||||||||
6,144,480 | 5,904,000 | 750,000 | ||||||||||||||
Yellowstone Landscape Group, Inc. (4%)* | Landscaping Services | Subordinated Note (10% Cash, 6% PIK, Due 04/14) | 15,476,540 | 15,383,142 | 15,383,142 | |||||||||||
15,476,540 | 15,383,142 | 15,383,142 | ||||||||||||||
Subtotal Non–Control / Non–Affiliate Investments | 535,470,096 | 571,951,156 | 587,495,700 | |||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments March 31, 2013 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Affiliate Investments: | ||||||||||||||||
All Aboard America! Holdings Inc. (2%)* | Motor Coach Operator | Subordinated Note (12% Cash, 3% PIK, Due 10/17) | $ | 8,696,065 | $ | 8,544,388 | $ | 8,544,388 | ||||||||
Convertible Preferred Interest in LLC | 1,500,000 | 1,979,000 | ||||||||||||||
8,696,065 | 10,044,388 | 10,523,388 | ||||||||||||||
American De-Rosa Lamparts, LLC and Hallmark Lighting (1%)* | Wholesale and Distribution | Subordinated Note (12% Cash, 6% PIK, Due 10/13) | 6,533,798 | 5,778,219 | 5,778,219 | |||||||||||
Membership Units (6,516 units) | 620,653 | — | ||||||||||||||
6,533,798 | 6,398,872 | 5,778,219 | ||||||||||||||
AP Services, Inc. (0%)* | Fluid Sealing Supplies and Services | Class A Units (933 units) | 302,886 | 556,618 | ||||||||||||
Class B Units (496 units) | — | 295,642 | ||||||||||||||
302,886 | 852,260 | |||||||||||||||
Asset Point, LLC (2%)* | Asset Management Software Provider | Senior Note (12% Cash, 5% PIK, Due 03/13) | 6,384,976 | 6,384,974 | 6,384,974 | |||||||||||
Senior Note (12% Cash, 2% PIK, Due 07/15) | 633,404 | 633,404 | 585,000 | |||||||||||||
Subordinated Note (7% Cash, Due 03/13) | 941,798 | 941,798 | 706,000 | |||||||||||||
Membership Units (1,000,000 units) | 8,203 | 817,000 | ||||||||||||||
Options to Purchase Membership Units (342,407 units) | 500,000 | 189,000 | ||||||||||||||
Membership Unit Warrants (356,506 units) | — | — | ||||||||||||||
7,960,178 | 8,468,379 | 8,681,974 | ||||||||||||||
Captek Softgel International, Inc. (2%)* | Nutraceutical Manufacturer | Subordinated Note (12% Cash, 4% PIK, Due 08/16) |