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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 March 31, 2013

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 May 6, 2013 was 27,563,375.

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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 March 31, 2013 and Consolidated Balance Sheet as of December 31, 2012	3
	Unaudited Consolidated Statements of Operations for the Three Months Ended March 31, 2013 and 2012	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Three Months Ended March 31, 2013 and 2012	5
	Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2013 and 2012	6
	Unaudited Consolidated Schedule of Investments as of March 31, 2013	7
	Consolidated Schedule of Investments as of December 31, 2012	13
	Notes to Unaudited Consolidated Financial Statements	19
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

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

TRIANGLE CAPITAL CORPORATION

Consolidated Balance Sheets

 

	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

See accompanying notes.

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Operations

	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

See accompanying notes.

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Changes in Net Assets

 

	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

See accompanying notes.

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows

 

	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

See accompanying notes.

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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

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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

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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

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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

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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)