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. | ||
June 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Investments at fair value: | |||||||
Non-Control / Non-Affiliate investments (cost of $519,536,914 and $565,737,092 at June 30, 2013 and December 31, 2012, respectively) | $ | 537,770,803 | $ | 579,078,939 | |||
Affiliate investments (cost of $111,083,771 and $123,019,204 at June 30, 2013 and December 31, 2012, respectively) | 109,258,133 | 123,408,445 | |||||
Control investments (cost of $7,990,474 and $11,474,208 at June 30, 2013 and December 31, 2012, respectively) | 3,068,541 | 4,315,339 | |||||
Total investments at fair value | 650,097,477 | 706,802,723 | |||||
Cash and cash equivalents | 117,131,063 | 72,300,423 | |||||
Interest and fees receivable | 4,179,016 | 2,650,178 | |||||
Prepaid expenses and other current assets | 509,768 | 403,123 | |||||
Deferred financing fees | 11,828,830 | 12,323,430 | |||||
Property and equipment, net | 53,595 | 55,535 | |||||
Total assets | $ | 783,799,749 | $ | 794,535,412 | |||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 4,451,101 | $ | 6,405,570 | |||
Interest payable | 2,955,187 | 3,136,574 | |||||
Taxes payable | 234,796 | 3,210,989 | |||||
Deferred income taxes | 2,373,214 | 1,342,456 | |||||
Notes | 149,500,000 | 149,500,000 | |||||
SBA-guaranteed debentures payable | 193,193,422 | 213,604,579 | |||||
Total liabilities | 352,707,720 | 377,200,168 | |||||
Net Assets: | |||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 27,600,250 and 27,284,798 shares issued and outstanding as of June 30, 2013 and December 31, 2012, respectively) | 27,600 | 27,285 | |||||
Additional paid in capital | 406,567,839 | 403,322,097 | |||||
Investment income in excess of distributions | 8,098,018 | 6,783,161 | |||||
Accumulated realized gains on investments | 7,285,470 | 1,972,940 | |||||
Net unrealized appreciation of investments | 9,113,102 | 5,229,761 | |||||
Total net assets | 431,092,029 | 417,335,244 | |||||
Total liabilities and net assets | $ | 783,799,749 | $ | 794,535,412 | |||
Net asset value per share | $ | 15.62 | $ | 15.30 |
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | ||||||||||||
Investment income: | |||||||||||||||
Loan interest, fee and dividend income: | |||||||||||||||
Non-Control / Non-Affiliate investments | $ | 19,696,422 | $ | 15,060,897 | $ | 36,883,923 | $ | 28,024,499 | |||||||
Affiliate investments | 3,246,452 | 2,952,805 | 6,209,481 | 5,669,954 | |||||||||||
Control investments | 46,194 | 52,218 | 95,565 | 111,991 | |||||||||||
Total loan interest, fee and dividend income | 22,989,068 | 18,065,920 | 43,188,969 | 33,806,444 | |||||||||||
Payment-in-kind interest income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 3,234,925 | 2,850,412 | 6,485,473 | 5,437,679 | |||||||||||
Affiliate investments | 981,731 | 870,085 | 1,940,110 | 1,524,318 | |||||||||||
Control investments | 5,961 | 20,000 | 11,828 | 39,971 | |||||||||||
Total payment-in-kind interest income | 4,222,617 | 3,740,497 | 8,437,411 | 7,001,968 | |||||||||||
Interest income from cash and cash equivalent investments | 44,463 | 156,049 | 95,703 | 265,907 | |||||||||||
Total investment income | 27,256,148 | 21,962,466 | 51,722,083 | 41,074,319 | |||||||||||
Expenses: | |||||||||||||||
Interest and other debt financing fees | 4,989,523 | 4,144,623 | 10,101,035 | 7,455,360 | |||||||||||
General and administrative expenses | 5,994,702 | 3,767,420 | 10,115,660 | 7,374,687 | |||||||||||
Total expenses | 10,984,225 | 7,912,043 | 20,216,695 | 14,830,047 | |||||||||||
Net investment income | 16,271,923 | 14,050,423 | 31,505,388 | 26,244,272 | |||||||||||
Net realized gains: | |||||||||||||||
Net realized gain on investments – Non-Control / Non-Affiliate | 2,428,668 | 2,784,108 | 3,007,450 | 2,784,108 | |||||||||||
Net realized gain on investments – Affiliate | 3,321,999 | — | 4,595,999 | — | |||||||||||
Net realized gain (loss) on investments – Control | (2,290,919 | ) | 838,039 | (2,290,919 | ) | 838,039 | |||||||||
Net unrealized appreciation (depreciation) of investments | 2,116,796 | (2,046,369 | ) | 3,883,341 | (1,424,898 | ) | |||||||||
Total net gain on investments | 5,576,544 | 1,575,778 | 9,195,871 | 2,197,249 | |||||||||||
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 | $ | 21,848,467 | $ | 15,626,201 | $ | 40,268,283 | $ | 28,243,709 | |||||||
Net investment income per share—basic and diluted | $ | 0.59 | $ | 0.52 | $ | 1.15 | $ | 1.00 | |||||||
Net increase in net assets resulting from operations per share—basic and diluted | $ | 0.79 | $ | 0.57 | $ | 1.46 | $ | 1.08 | |||||||
Dividends declared per common share | $ | 0.54 | $ | 0.50 | $ | 1.08 | $ | 0.97 | |||||||
Weighted average number of shares outstanding—basic and diluted | 27,569,524 | 27,262,646 | 27,501,407 | 26,168,973 |
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 | — | — | — | 26,244,272 | — | — | 26,244,272 | |||||||||||||||||||
Stock-based compensation | — | — | 1,372,096 | — | — | — | 1,372,096 | |||||||||||||||||||
Net realized gain on investments | — | — | — | — | 3,622,147 | (3,062,895 | ) | 559,252 | ||||||||||||||||||
Net unrealized appreciation of investments | — | — | — | — | — | 1,637,997 | 1,637,997 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (205,043 | ) | — | — | (205,043 | ) | |||||||||||||||||
Income tax benefit | — | — | — | 7,231 | — | — | 7,231 | |||||||||||||||||||
Dividends/distributions declared | 81,861 | 81 | 1,664,085 | (26,418,899 | ) | — | — | (24,754,733 | ) | |||||||||||||||||
Public offering of common stock | 4,255,000 | 4,255 | 77,118,719 | — | — | — | 77,122,974 | |||||||||||||||||||
Issuance of restricted stock | 235,086 | 236 | (236 | ) | — | — | — | — | ||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (57,539 | ) | (58 | ) | (1,111,386 | ) | — | — | — | (1,111,444 | ) | |||||||||||||||
Balance, June 30, 2012 | 27,289,134 | $ | 27,289 | $ | 397,340,547 | $ | 6,475,047 | $ | 4,633,796 | $ | 6,682,878 | $ | 415,159,557 |
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 | — | — | — | 31,505,388 | — | — | 31,505,388 | |||||||||||||||||||
Stock-based compensation | — | — | 1,675,896 | — | — | — | 1,675,896 | |||||||||||||||||||
Net realized gain on investments | — | — | — | — | 5,312,530 | (3,863,315 | ) | 1,449,215 | ||||||||||||||||||
Net unrealized appreciation of investments | — | — | — | — | — | 7,746,656 | 7,746,656 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (412,673 | ) | — | — | (412,673 | ) | |||||||||||||||||
Income tax provision | — | — | — | (20,303 | ) | — | — | (20,303 | ) | |||||||||||||||||
Dividends/distributions declared | 57,042 | 57 | 1,570,104 | (29,757,555 | ) | — | — | (28,187,394 | ) | |||||||||||||||||
Issuance of restricted stock | 258,410 | 258 | (258 | ) | — | — | — | — | ||||||||||||||||||
Balance, June 30, 2013 | 27,600,250 | $ | 27,600 | $ | 406,567,839 | $ | 8,098,018 | $ | 7,285,470 | $ | 9,113,102 | $ | 431,092,029 |
Six Months Ended | Six Months Ended | ||||||
June 30, 2013 | June 30, 2012 | ||||||
Cash flows from operating activities: | |||||||
Net increase in net assets resulting from operations | $ | 40,268,283 | $ | 28,243,709 | |||
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | |||||||
Purchases of portfolio investments | (37,112,821 | ) | (156,571,355 | ) | |||
Repayments received/sales of portfolio investments | 111,695,347 | 71,439,853 | |||||
Loan origination and other fees received | 621,440 | 2,309,229 | |||||
Net realized gain on investments | (5,312,530 | ) | (3,622,147 | ) | |||
Net unrealized (appreciation) depreciation of investments | (4,914,099 | ) | 1,251,562 | ||||
Deferred income taxes | 1,030,758 | 173,337 | |||||
Payment-in-kind interest accrued, net of payments received | (5,263,335 | ) | (3,765,725 | ) | |||
Amortization of deferred financing fees | 766,221 | 504,619 | |||||
Loss on extinguishment of debt | 412,673 | 205,043 | |||||
Accretion of loan origination and other fees | (2,243,128 | ) | (1,554,726 | ) | |||
Accretion of loan discounts | (765,628 | ) | (811,990 | ) | |||
Accretion of discount on SBA-guaranteed debentures payable | 88,843 | 87,256 | |||||
Depreciation expense | 19,085 | 15,811 | |||||
Stock-based compensation | 1,675,896 | 1,372,096 | |||||
Changes in operating assets and liabilities: | |||||||
Interest and fees receivable | (1,528,838 | ) | (2,564,588 | ) | |||
Prepaid expenses | (106,645 | ) | 221,547 | ||||
Accounts payable and accrued liabilities | (1,954,469 | ) | (1,397,172 | ) | |||
Interest payable | (181,387 | ) | 29,435 | ||||
Taxes payable | (2,976,193 | ) | (1,198,973 | ) | |||
Net cash provided by (used in) operating activities | 94,219,473 | (65,633,179 | ) | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (17,145 | ) | (13,354 | ) | |||
Net cash used in investing activities | (17,145 | ) | (13,354 | ) | |||
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 | (684,294 | ) | (2,340,983 | ) | |||
Proceeds from public stock offerings, net of expenses | — | 77,122,974 | |||||
Common stock withheld for payroll taxes upon vesting of restricted stock | — | (1,111,444 | ) | ||||
Cash dividends paid | (28,187,394 | ) | (24,754,733 | ) | |||
Net cash provided by (used in) financing activities | (49,371,688 | ) | 92,505,814 | ||||
Net increase in cash and cash equivalents | 44,830,640 | 26,859,281 | |||||
Cash and cash equivalents, beginning of period | 72,300,423 | 66,868,340 | |||||
Cash and cash equivalents, end of period | $ | 117,131,063 | $ | 93,727,621 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 9,084,547 | $ | 6,671,706 | |||
Summary of non-cash financing transactions: | |||||||
Dividends paid through DRIP share issuances | $ | 1,570,161 | $ | 1,664,166 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 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) | $ | 12,601,270 | $ | 12,364,434 | $ | 12,364,434 | ||||||||
Common Units (1,250 units) | 1,250,000 | 1,264,000 | ||||||||||||||
12,601,270 | 13,614,434 | 13,628,434 | ||||||||||||||
Ambient Air Corporation (0%)* | Specialty Trade Contractors | Subordinated Note (0% Cash, 8% PIK, Due 06/20) | 454,628 | 66,993 | 372,000 | |||||||||||
454,628 | 66,993 | 372,000 | ||||||||||||||
Assurance Operations Corporation (0%)* | Metal Fabrication | Common Stock (517 shares) | 516,867 | 935,000 | ||||||||||||
516,867 | 935,000 | |||||||||||||||
Audio and Video Labs Holdings, Inc. (3%)* | Manufacturer and Distributor for Independent Artists and Authors | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 13,134,189 | 12,891,473 | 12,891,473 | |||||||||||
Common Units (134 units) | 1,300,000 | 1,150,000 | ||||||||||||||
13,134,189 | 14,191,473 | 14,041,473 | ||||||||||||||
Botanical Laboratories, Inc. (0%)* | Nutritional Supplement Manufacturing and Distribution | Common Unit Warrants (998,680 units) | 237,301 | 580,603 | ||||||||||||
237,301 | 580,603 | |||||||||||||||
Capital Contractors, Inc. (2%)* | Janitorial and Facilities Maintenance Services | Subordinated Notes (12% Cash, 2% PIK, Due 12/15) | 9,468,396 | 9,083,092 | 9,083,092 | |||||||||||
Common Stock Warrants (20 shares) | 492,000 | 345,000 | ||||||||||||||
9,468,396 | 9,575,092 | 9,428,092 | ||||||||||||||
Carolina Beverage Group, LLC (1%)* | Beverage Manufacturing and Packaging | Class A Units (11,974 units) | 1,077,615 | 1,449,000 | ||||||||||||
Class B Units (11,974 units) | 119,735 | 1,823,000 | ||||||||||||||
1,197,350 | 3,272,000 | |||||||||||||||
Charter Facilities Services, Inc. (2%)* | Retail, Restaurant, and Commercial Facilities Maintenance | Subordinated Note (10% Cash, 3% PIK, Due 07/18) | 8,210,044 | 8,083,515 | 8,083,515 | |||||||||||
Convertible Preferred Units (2,500 units) | 250,000 | 424,000 | ||||||||||||||
8,210,044 | 8,333,515 | 8,507,515 | ||||||||||||||
Chromaflo Technologies, LLC (4%)* | Colorant Manufacturer and Distributor | Subordinated Note (12% Cash, 2% PIK, Due 10/17) | 16,632,900 | 16,364,505 | 16,364,505 | |||||||||||
Preferred A Units (22,561 units) | 2,256,098 | 2,847,000 | ||||||||||||||
16,632,900 | 18,620,603 | 19,211,505 | ||||||||||||||
Comverge, Inc. (4%)* | Provider of Intelligent Energy Management Solutions | Senior Note (12% Cash, 3% PIK, Due 05/18) | 15,270,247 | 14,998,819 | 14,998,819 | |||||||||||
Preferred Units (900 units) | 900,000 | 942,000 | ||||||||||||||
Common Units (1,000,000 units) | 100,000 | 115,000 | ||||||||||||||
15,270,247 | 15,998,819 | 16,055,819 | ||||||||||||||
Continental Anesthesia Management, LLC (2%)* | Physicians Management Services | Subordinated Note (14.0% Cash, Due 11/14) | 9,825,000 | 9,666,763 | 8,849,000 | |||||||||||
Warrant (263 shares) | 276,100 | — | ||||||||||||||
9,825,000 | 9,942,863 | 8,849,000 | ||||||||||||||
CRS Reprocessing, LLC (6%)* | Fluid Reprocessing Services | Subordinated Note (12% Cash, 2% PIK, Due 11/15) | 11,887,166 | 11,704,712 | 11,704,712 | |||||||||||
Subordinated Note (12% Cash, 2% PIK, Due 11/15) | 13,109,315 | 12,055,213 | 12,055,213 | |||||||||||||
Series C Preferred Units (30 units) | 288,342 | 427,000 | ||||||||||||||
Common Unit Warrant (664 units) | 1,759,556 | 2,626,000 | ||||||||||||||
Series D Preferred Units (16 units) | 107,074 | 168,000 | ||||||||||||||
24,996,481 | 25,914,897 | 26,980,925 | ||||||||||||||
DataSource Incorporated (2%)* | Print Supply Chain Management Services | Subordinated Note (12% Cash, 2% PIK, Due 01/18) | 8,670,799 | 8,524,089 | 8,524,089 | |||||||||||
Common Units (47 units) | 1,000,000 | 1,114,000 | ||||||||||||||
8,670,799 | 9,524,089 | 9,638,089 | ||||||||||||||
DCWV Acquisition Corporation (1%)* | Arts & Crafts and Home Decor Products Designer and Supplier | Subordinated Note (12% Cash, 3% PIK, Due 09/17) | 6,146,584 | 6,040,388 | 4,862,000 | |||||||||||
6,146,584 | 6,040,388 | 4,862,000 | ||||||||||||||
DLR Restaurants, LLC (0%)* | Restaurant | Royalty Rights | — | — | ||||||||||||
— | — | |||||||||||||||
Dyno Acquiror, Inc. (2%)* | Sewing Products and Seasonal Decorative Products Supplier | Subordinated Note (12% Cash, 2% PIK, Due 11/18) | 7,022,574 | 6,882,574 | 6,882,574 | |||||||||||
Preferred Series A Units (600,000 units) | 600,000 | 600,000 | ||||||||||||||
7,022,574 | 7,482,574 | 7,482,574 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 2013 | ||||||||||||||||
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) | $ | 6,940,632 | $ | 6,792,567 | $ | 6,792,567 | ||||||||
Common Stock (18,029 shares) | 183,562 | 111,000 | ||||||||||||||
Preferred Stock A (1,596 shares) | 1,596,126 | 1,724,000 | ||||||||||||||
6,940,632 | 8,572,255 | 8,627,567 | ||||||||||||||
Electronic Systems Protection, Inc. (1%)* | Power Protection Systems Manufacturing | Subordinated Note (12% Cash, 2% PIK, Due 12/15) | 4,289,253 | 4,265,863 | 4,265,863 | |||||||||||
Common Stock (570 shares) | 285,000 | 307,000 | ||||||||||||||
4,289,253 | 4,550,863 | 4,572,863 | ||||||||||||||
Foodstate, Inc. (1%)* | Nutritional Supplement Manufacturing and Distribution | Subordinated Note (12% Cash, 3.8% PIK, Due 10/16) | 5,584,163 | 5,510,802 | 5,510,802 | |||||||||||
5,584,163 | 5,510,802 | 5,510,802 | ||||||||||||||
Frozen Specialties, Inc. (2%)* | Frozen Foods Manufacturer | Subordinated Note (13% Cash, 5% PIK, Due 05/16) | 10,674,242 | 10,636,122 | 10,636,122 | |||||||||||
10,674,242 | 10,636,122 | 10,636,122 | ||||||||||||||
Garden Fresh Restaurant Corp. (0%)* | Restaurant | Membership Units (5,000 units) | 500,000 | 113,000 | ||||||||||||
500,000 | 113,000 | |||||||||||||||
Glencoe Business Services Holdings (5%)* | Business Process Outsourcing Provider | Subordinated Note (12% Cash, 2.5% PIK, Due 06/18) | 20,254,112 | 19,880,702 | 19,880,702 | |||||||||||
20,254,112 | 19,880,702 | 19,880,702 | ||||||||||||||
Grindmaster-Cecilware Corp. (1%)* | Food Services Equipment Manufacturer | Subordinated Note (12% Cash, 6% PIK, Due 04/16) | 6,871,666 | 6,827,412 | 6,002,000 | |||||||||||
6,871,666 | 6,827,412 | 6,002,000 | ||||||||||||||
Hatch Chile Co., LLC (1%)* | Food Products Distributor | Senior Note (19% Cash, Due 07/15) | 3,346,363 | 3,288,667 | 3,288,667 | |||||||||||
Subordinated Note (14% Cash, Due 07/15) | 743,637 | 659,094 | 659,094 | |||||||||||||
Unit Purchase Warrant (5,265 units) | 149,800 | 291,000 | ||||||||||||||
4,090,000 | 4,097,561 | 4,238,761 | ||||||||||||||
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) | 11,493,212 | 10,793,434 | 10,625,000 | |||||||||||
Subordinated Note-HPH (4% Cash, 6% PIK, Due 03/16) | 1,406,009 | 1,303,361 | 292,000 | |||||||||||||
Senior Subordinated Note-HP (14% Cash, 2% PIK, Due 03/16) | 1,374,824 | 1,353,013 | 1,353,013 | |||||||||||||
Preferred Units (0%) | 1,100,000 | 1,980,000 | ||||||||||||||
Preferred Unit Purchase Warrants (25%) | — | — | ||||||||||||||
Royalty Rights | — | — | ||||||||||||||
14,274,045 | 14,549,808 | 14,250,013 | ||||||||||||||
Infrastructure Corporation of America, Inc. (3%)* | Roadway Maintenance, Repair and Engineering Services | Subordinated Note (12% Cash, 2% PIK, Due 09/18) | 11,078,757 | 9,481,668 | 9,481,668 | |||||||||||
Common Stock Purchase Warrant (417,593 shares) | 2,411,000 | 2,370,000 | ||||||||||||||
11,078,757 | 11,892,668 | 11,851,668 | ||||||||||||||
Inland Pipe Rehabilitation Holding Company LLC (5%)* | Cleaning and Repair Services | Subordinated Note (13% Cash, 2% PIK, Due 12/16) | 21,007,449 | 20,793,115 | 20,793,115 | |||||||||||
Membership Interest Purchase Warrant (3.0%) | 853,500 | 2,174,000 | ||||||||||||||
21,007,449 | 21,646,615 | 22,967,115 | ||||||||||||||
IOS Acquisitions, Inc. (4%)* | Provider of Oil Country Tubular Goods Inspections and Repair Services | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 17,176,425 | 16,859,027 | 16,859,027 | |||||||||||
Common Units (7,314 Class A Units) | 1,699,847 | 1,357,000 | ||||||||||||||
17,176,425 | 18,558,874 | 18,216,027 | ||||||||||||||
Library Systems & Services, LLC (0%)* | Municipal Business Services | Common Stock Warrants (112 shares) | 58,995 | 1,638,000 | ||||||||||||
58,995 | 1,638,000 | |||||||||||||||
Magpul Industries Corp. (5%)* | Firearm Accessories Manufacturer and Distributor | Subordinated Note (12% Cash, 3% PIK, Due 03/17) | 13,300,000 | 13,100,747 | 13,100,747 | |||||||||||
Preferred Units (1,470 units) | 1,470,000 | 1,874,000 | ||||||||||||||
Common Units (30,000 units) | 30,000 | 5,532,000 | ||||||||||||||
13,300,000 | 14,600,747 | 20,506,747 | ||||||||||||||
Marine Acquisition Corp. (3%)* | Boat Steering System and Driver Control Provider | Subordinated Note (11.50% Cash, 2% PIK, Due 05/17) | 12,000,000 | 11,763,585 | 11,763,585 | |||||||||||
12,000,000 | 11,763,585 | 11,763,585 | ||||||||||||||
Media Storm, LLC (2%)* | Marketing Services | Subordinated Note (12% Cash, 2% PIK, Due 10/17) | 8,137,431 | 8,071,349 | 8,071,349 | |||||||||||
Membership Units (1,216,204 units) | 1,176,957 | 1,501,000 | ||||||||||||||
8,137,431 | 9,248,306 | 9,572,349 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 2013 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Media Temple, Inc. (3%)* | Web Hosting Services | Convertible Note (8% Cash, 6% PIK, Due 04/15) | $ | 4,000,001 | $ | 4,594,351 | $ | 8,117,000 | ||||||||
Common Stock Purchase Warrant (28,000 shares) | 1,251,000 | 3,551,000 | ||||||||||||||
4,000,001 | 5,845,351 | 11,668,000 | ||||||||||||||
Micross Solutions LLC (3%)* | Provider of Semiconductor Products and Services | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 10,722,502 | 10,574,072 | 10,574,072 | |||||||||||
Class A-2 Common Units (1,500,000 units) | 1,500,000 | 1,024,000 | ||||||||||||||
10,722,502 | 12,074,072 | 11,598,072 | ||||||||||||||
Minco Technology Labs, LLC (0%)* | Semiconductor Distribution | Subordinated Note (6.5% Cash, 3.5% PIK, Due 12/16) | 5,635,155 | 5,462,938 | 2,164,000 | |||||||||||
Class A Units (5,000 HoldCo. units) | 500,000 | — | ||||||||||||||
Class A Units (3,907 OpCo. units) | 3,907 | — | ||||||||||||||
5,635,155 | 5,966,845 | 2,164,000 | ||||||||||||||
My Alarm Center, LLC (3%)* | Security Company | Subordinated Note (12% Cash, 2.5% PIK, Due 09/17) | 10,198,879 | 10,111,405 | 10,111,405 | |||||||||||
Preferred Units (2,000,000 units) | 2,000,000 | 2,023,000 | ||||||||||||||
10,198,879 | 12,111,405 | 12,134,405 | ||||||||||||||
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) | 13,094,852 | 12,915,486 | 12,915,486 | |||||||||||
Class A Limited Partnership Units (15,000 units) | 1,500,000 | 1,446,000 | ||||||||||||||
13,094,852 | 14,415,486 | 14,361,486 | ||||||||||||||
PowerDirect Marketing, LLC (2%)* | Marketing Services | Subordinated Note (12% Cash, 2% PIK, Due 05/16) | 7,236,063 | 6,713,962 | 6,713,962 | |||||||||||
Common Unit Purchase Warrants | 590,200 | 1,562,000 | ||||||||||||||
7,236,063 | 7,304,162 | 8,275,962 | ||||||||||||||
ROM Acquisition Corporation (3%)* | Military and Industrial Vehicle Equipment Manufacturing | Subordinated Note (12% Cash, 3% PIK, Due 03/17) | 13,357,469 | 13,248,838 | 13,248,838 | |||||||||||
13,357,469 | 13,248,838 | 13,248,838 | ||||||||||||||
Sheplers, Inc. (3%)* | Western Apparel Retailer | Subordinated Note (13.2% Cash, Due 12/16) | 8,750,000 | 8,582,808 | 8,582,808 | |||||||||||
Subordinated Note (10% Cash, 7% PIK, Due 12/17) | 4,169,023 | 4,112,778 | 4,112,778 | |||||||||||||
12,919,023 | 12,695,586 | 12,695,586 | ||||||||||||||
Snacks Holding Corporation (2%)* | Trail Mixes and Nut Manufacturer and Marketer | Subordinated Note (12% Cash, 1% PIK, Due 5/20) | 5,005,278 | 4,967,778 | 4,967,778 | |||||||||||
Preferred A Units (22,368 units) | 1,053,897 | 2,254,000 | ||||||||||||||
Preferred B Units (10,380 units) | 25,337 | 123,000 | ||||||||||||||
Common Units (190,935 units) | 150,000 | 903,000 | ||||||||||||||
Common Stock Warrants (14,558 shares) | 14,558 | 98,000 | ||||||||||||||
5,005,278 | 6,211,570 | 8,345,778 | ||||||||||||||
SRC, Inc. (1%)* | Specialty Chemical Manufacturer | Subordinated Notes (12% Cash, 2% PIK, Due 09/14) | 6,084,208 | 5,957,071 | 5,670,000 | |||||||||||
Common Stock Purchase Warrants | 123,800 | — | ||||||||||||||
6,084,208 | 6,080,871 | 5,670,000 | ||||||||||||||
Stella Environmental Services, LLC (0%)* | Waste Transfer Stations | Common Stock Purchase Warrants | 20,000 | 394,000 | ||||||||||||
20,000 | 394,000 | |||||||||||||||
Syrgis Holdings, Inc. (0%)* | Specialty Chemical Manufacturer | Class C Units (2,114 units) | 111,037 | 201,281 | ||||||||||||
111,037 | 201,281 | |||||||||||||||
The Krystal Company (1%)* | Quick Service Restaurant | Class A Units of Limited Partnership (2,000 units) | 2,000,000 | 3,455,000 | ||||||||||||
2,000,000 | 3,455,000 | |||||||||||||||
TMR Automotive Service Supply, LLC (1%)* | Automotive Supplies | Subordinated Note (12% Cash, 1% PIK, Due 03/16) | 4,500,000 | 4,316,532 | 4,316,532 | |||||||||||
Unit Purchase Warrant (316,858 units) | 195,000 | 377,000 | ||||||||||||||
4,500,000 | 4,511,532 | 4,693,532 | ||||||||||||||
Tomich Brothers, LLC (3%)* | Squid and Wetfish Processor and Distributor | Subordinated Note (12% Cash, 3% PIK, Due 04/16) | 12,128,369 | 11,912,539 | 11,912,539 | |||||||||||
12,128,369 | 11,912,539 | 11,912,539 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 2013 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Top Knobs USA, Inc. (0%)* | Hardware Designer and Distributor | Common Stock (26,593 shares) | $ | 750,000 | $ | 1,149,000 | ||||||||||
750,000 | 1,149,000 | |||||||||||||||
Trinity Consultants Holdings, Inc. (2%)* | Air Quality Consulting Services | Subordinated Note (12% Cash, 2.0% PIK, Due 11/17) | $ | 8,242,454 | 8,111,078 | 8,111,078 | ||||||||||
Series A Preferred Stock (10,000 units) | 785,775 | 883,000 | ||||||||||||||
Common Stock (50,000 units) | 50,000 | 658,000 | ||||||||||||||
8,242,454 | 8,946,853 | 9,652,078 | ||||||||||||||
TrustHouse Services Group, Inc. (0%)* | Food Management Services | Class A Units (1,557 units) | 69,302 | 242,996 | ||||||||||||
Class B Units (82 units) | 3,647 | 8,794 | ||||||||||||||
Class E Units (838 units) | 101,532 | 139,628 | ||||||||||||||
174,481 | 391,418 | |||||||||||||||
Tulsa Inspection Resources, Inc. (2%)* | Pipeline Inspection Services | Subordinated Note (14%-17.5% Cash, Due 03/14) | 5,810,588 | 5,723,472 | 5,723,472 | |||||||||||
Common Units (2 units) | 337,925 | 810,000 | ||||||||||||||
Common Stock Warrants (8 shares) | 321,000 | 3,109,000 | ||||||||||||||
5,810,588 | 6,382,397 | 9,642,472 | ||||||||||||||
United Biologics, LLC (2%)* | Allergy Immunotherapy | Subordinated Note (12% Cash, 2% PIK, Due 03/17) | 10,020,470 | 9,187,466 | 9,187,466 | |||||||||||
Class A Common Stock (177,935 shares) | 1,999,989 | 648,000 | ||||||||||||||
Class A-1 Common Stock (18,818 shares) | 137,324 | 137,324 | ||||||||||||||
Class A-1 Common Kicker Stock (14,114 shares) | — | — | ||||||||||||||
Class A & Class B Unit Purchase Warrants | 838,117 | 165,000 | ||||||||||||||
10,020,470 | 12,162,896 | 10,137,790 | ||||||||||||||
United Retirement Plan Consultants, Inc. (3%)* | Retirement Plan Administrator | Subordinated Note (12% Cash, 4% PIK, Due 09/16) | 12,589,260 | 12,403,285 | 12,403,285 | |||||||||||
Preferred A Units (90,000 units) | 900,000 | 926,000 | ||||||||||||||
Common Units (10,000 units) | 100,000 | — | ||||||||||||||
12,589,260 | 13,403,285 | 13,329,285 | ||||||||||||||
Wholesale Floors, Inc. (1%)* | Commercial Services | Subordinated Note (12.5% Cash, 3.5% PIK, Due 06/14) | 3,887,615 | 3,850,397 | 3,850,397 | |||||||||||
Membership Interest Purchase Warrant (4.0%) | 132,800 | 192,000 | ||||||||||||||
3,887,615 | 3,983,197 | 4,042,397 | ||||||||||||||
Workforce Software, LLC (3%)* | Software Provider | Subordinated Note (11% Cash, 5% PIK, Due 11/16) | 8,000,000 | 7,134,199 | 7,134,199 | |||||||||||
Class B Preferred Units (1,020,000 units) | 1,020,000 | 1,188,000 | ||||||||||||||
Class C Preferred Units (624,253 units) | 1,250,000 | 1,875,000 | ||||||||||||||
Common Unit Purchase Warrants (2,434,749 units) | 952,300 | 4,706,000 | ||||||||||||||
8,000,000 | 10,356,499 | 14,903,199 | ||||||||||||||
WSO Holdings, LP (5%)* | Organic/Fair Trade Sugar, Syrup, Nectar and Honey Producer | Subordinated Note (12% Cash, 2% PIK, Due 10/17) | 20,300,379 | 20,052,537 | 20,052,537 | |||||||||||
Common Points (3,000 points) | 3,000,000 | 2,816,000 | ||||||||||||||
20,300,379 | 23,052,537 | 22,868,537 | ||||||||||||||
Xchange Technology Group, LLC (0%)* | Used and Refurbished IT Asset Supplier | Subordinated Note (8% Cash, Due 06/15) | 6,266,299 | 5,904,000 | 750,000 | |||||||||||
Royalty Rights | — | — | ||||||||||||||
6,266,299 | 5,904,000 | 750,000 | ||||||||||||||
Yellowstone Landscape Group, Inc. (4%)* | Landscaping Services | Subordinated Note (8% Cash, 8% PIK, Due 04/14) | 15,786,071 | 15,714,997 | 15,714,997 | |||||||||||
15,786,071 | 15,714,997 | 15,714,997 | ||||||||||||||
Subtotal Non–Control / Non–Affiliate Investments | 483,896,222 | 519,536,914 | 537,770,803 | |||||||||||||
Affiliate Investments: | ||||||||||||||||
All Aboard America! Holdings Inc. (2%)* | Motor Coach Operator | Subordinated Note (12% Cash, 3% PIK, Due 10/17) | 8,762,177 | 8,616,978 | 8,616,978 | |||||||||||
Convertible Preferred Interest in LLC | 1,500,000 | 1,843,000 | ||||||||||||||
8,762,177 | 10,116,978 | 10,459,978 | ||||||||||||||
American De-Rosa Lamparts, LLC and Hallmark Lighting (1%)* | Lighting Wholesale and Distribution | Subordinated Note (12% Cash, 6% PIK, Due 6/16) | 6,633,396 | 5,879,747 | 5,879,747 | |||||||||||
Membership Units (6,516 units) | 620,653 | — | ||||||||||||||
6,633,396 | 6,500,400 | 5,879,747 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 2013 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
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 03/14) | $ | 6,466,015 | 6,466,013 | 6,466,013 | ||||||||||
Subordinated Note (12% Cash, 2% PIK, Due 07/15) | 636,612 | 636,612 |