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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 June 30, 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 August 5, 2013 was 27,600,250.

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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 June 30, 2013 and Consolidated Balance Sheet as of December 31, 2012	3
	Unaudited Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2013 and 2012	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Six Months Ended June 30, 2013 and 2012	5
	Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2013 and 2012	6
	Unaudited Consolidated Schedule of Investments as of June 30, 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	43
Item 4.	Controls and Procedures	44
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3.	Defaults Upon Senior Securities	45
Item 4.	Mine Safety Disclosures	45
Item 5.	Other Information	45
Item 6.	Exhibits	46
Signatures		47
Exhibits

2

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

TRIANGLE CAPITAL CORPORATION

Consolidated Balance Sheets

 

	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

See accompanying notes.

3

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Operations

	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

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	—			—				—				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

See accompanying notes.

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows

 

	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

See accompanying notes.

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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

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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

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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

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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

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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