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. | ||
September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Investments at fair value: | |||||||
Non-Control / Non-Affiliate investments (cost of $499,409,391 and $565,737,092 at September 30, 2013 and December 31, 2012, respectively) | $ | 519,185,426 | $ | 579,078,939 | |||
Affiliate investments (cost of $106,302,777 and $123,019,204 at September 30, 2013 and December 31, 2012, respectively) | 108,028,880 | 123,408,445 | |||||
Control investments (cost of $7,977,878 and $11,474,208 at September 30, 2013 and December 31, 2012, respectively) | 3,261,887 | 4,315,339 | |||||
Total investments at fair value | 630,476,193 | 706,802,723 | |||||
Cash and cash equivalents | 160,020,438 | 72,300,423 | |||||
Interest and fees receivable | 3,885,283 | 2,650,178 | |||||
Prepaid expenses and other current assets | 785,992 | 403,123 | |||||
Deferred financing fees | 11,441,030 | 12,323,430 | |||||
Property and equipment, net | 54,174 | 55,535 | |||||
Total assets | $ | 806,663,110 | $ | 794,535,412 | |||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 7,128,708 | $ | 6,405,570 | |||
Interest payable | 1,072,595 | 3,136,574 | |||||
Taxes payable | 40,249 | 3,210,989 | |||||
Deferred income taxes | 2,780,236 | 1,342,456 | |||||
Borrowings under credit facility | 11,636,928 | — | |||||
Notes | 149,500,000 | 149,500,000 | |||||
SBA-guaranteed debentures payable | 193,238,889 | 213,604,579 | |||||
Total liabilities | 365,397,605 | 377,200,168 | |||||
Net Assets: | |||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 27,678,286 and 27,284,798 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively) | 27,678 | 27,285 | |||||
Additional paid in capital | 408,501,259 | 403,322,097 | |||||
Investment income in excess of distributions | 10,432,313 | 6,783,161 | |||||
Accumulated realized gains | 8,309,620 | 1,972,940 | |||||
Net unrealized appreciation | 13,994,635 | 5,229,761 | |||||
Total net assets | 441,265,505 | 417,335,244 | |||||
Total liabilities and net assets | $ | 806,663,110 | $ | 794,535,412 | |||
Net asset value per share | $ | 15.94 | $ | 15.30 |
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||
Investment income: | |||||||||||||||
Loan interest, fee and dividend income: | |||||||||||||||
Non-Control / Non-Affiliate investments | $ | 19,933,576 | $ | 16,376,768 | $ | 56,817,499 | $ | 44,401,267 | |||||||
Affiliate investments | 2,710,338 | 3,838,341 | 8,919,819 | 9,508,295 | |||||||||||
Control investments | 50,334 | 49,384 | 145,899 | 161,375 | |||||||||||
Total loan interest, fee and dividend income | 22,694,248 | 20,264,493 | 65,883,217 | 54,070,937 | |||||||||||
Payment-in-kind interest income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 3,591,182 | 3,017,120 | 10,076,655 | 8,454,799 | |||||||||||
Affiliate investments | 942,609 | 946,345 | 2,882,719 | 2,470,663 | |||||||||||
Control investments | 6,058 | 20,250 | 17,886 | 60,221 | |||||||||||
Total payment-in-kind interest income | 4,539,849 | 3,983,715 | 12,977,260 | 10,985,683 | |||||||||||
Interest income from cash and cash equivalent investments | 81,071 | 78,500 | 176,774 | 344,407 | |||||||||||
Total investment income | 27,315,168 | 24,326,708 | 79,037,251 | 65,401,027 | |||||||||||
Operating expenses: | |||||||||||||||
Interest and other debt financing fees | 4,997,620 | 4,046,885 | 15,098,655 | 11,502,245 | |||||||||||
General and administrative expenses | 5,537,980 | 4,403,469 | 15,653,640 | 11,778,156 | |||||||||||
Total operating expenses | 10,535,600 | 8,450,354 | 30,752,295 | 23,280,401 | |||||||||||
Net investment income | 16,779,568 | 15,876,354 | 48,284,956 | 42,120,626 | |||||||||||
Realized and unrealized gains (losses) on investments and foreign currency borrowings: | |||||||||||||||
Net realized gains (losses): | |||||||||||||||
Non-Control / Non-Affiliate | 1,006,339 | 816,393 | 4,013,789 | 3,600,501 | |||||||||||
Affiliate | 17,811 | 785,132 | 4,613,810 | 785,132 | |||||||||||
Control | — | — | (2,290,919 | ) | 838,039 | ||||||||||
Net realized gains (losses) | 1,024,150 | 1,601,525 | 6,336,680 | 5,223,672 | |||||||||||
Net unrealized appreciation (depreciation): | |||||||||||||||
Investments | 4,892,807 | (586,937 | ) | 8,776,148 | (2,011,835 | ) | |||||||||
Foreign currency borrowings | (11,274 | ) | — | (11,274 | ) | — | |||||||||
Net unrealized appreciation (depreciation) | 4,881,533 | (586,937 | ) | 8,764,874 | (2,011,835 | ) | |||||||||
Net realized and unrealized gains (losses) on investments and foreign currency borrowings | 5,905,683 | 1,014,588 | 15,101,554 | 3,211,837 | |||||||||||
Loss on extinguishment of debt | — | (624,768 | ) | (412,673 | ) | (829,811 | ) | ||||||||
Income tax benefit (provision) | 486,413 | (34,388 | ) | 466,110 | (27,157 | ) | |||||||||
Net increase in net assets resulting from operations | $ | 23,171,664 | $ | 16,231,786 | $ | 63,439,947 | $ | 44,475,495 | |||||||
Net investment income per share—basic and diluted | $ | 0.61 | $ | 0.58 | $ | 1.75 | $ | 1.59 | |||||||
Net increase in net assets resulting from operations per share—basic and diluted | $ | 0.84 | $ | 0.59 | $ | 2.30 | $ | 1.68 | |||||||
Dividends declared per common share | $ | 0.54 | $ | 0.52 | $ | 1.62 | $ | 1.49 | |||||||
Weighted average number of shares outstanding—basic and diluted | 27,619,464 | 27,290,493 | 27,541,442 | 26,545,542 |
Common Stock | Additional Paid In Capital | Investment Income in Excess of Distributions | Accumulated Realized Gains | Net Unrealized Appreciation | 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 | — | — | — | 42,120,626 | — | — | 42,120,626 | |||||||||||||||||||
Stock-based compensation | — | — | 2,074,927 | — | — | — | 2,074,927 | |||||||||||||||||||
Net realized gain on investments | — | — | — | — | 5,223,672 | (3,713,579 | ) | 1,510,093 | ||||||||||||||||||
Net unrealized appreciation of investments | — | — | — | — | — | 1,701,744 | 1,701,744 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (829,811 | ) | — | — | (829,811 | ) | |||||||||||||||||
Income tax benefit | — | — | — | (27,157 | ) | — | — | (27,157 | ) | |||||||||||||||||
Dividends/distributions declared | 113,112 | 113 | 2,462,834 | (40,609,249 | ) | — | — | (38,146,302 | ) | |||||||||||||||||
Public offering of common stock | 4,255,000 | 4,255 | 77,118,719 | — | — | — | 77,122,974 | |||||||||||||||||||
Issuance of restricted stock | 235,086 | 235 | (235 | ) | — | — | — | — | ||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (57,539 | ) | (58 | ) | (1,111,386 | ) | — | — | — | (1,111,444 | ) | |||||||||||||||
Balance, September 30, 2012 | 27,320,385 | $ | 27,320 | $ | 398,842,128 | $ | 7,501,895 | $ | 6,235,321 | $ | 6,095,941 | $ | 418,702,605 |
Common Stock | Additional Paid In Capital | Investment Income in Excess of Distributions | Accumulated Realized Gains | Net Unrealized Appreciation | 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 | — | — | — | 48,284,956 | — | — | 48,284,956 | |||||||||||||||||||
Stock-based compensation | — | — | 2,817,267 | — | — | — | 2,817,267 | |||||||||||||||||||
Net realized gain on investments | — | — | — | — | 6,336,680 | (3,613,847 | ) | 2,722,833 | ||||||||||||||||||
Net unrealized appreciation of investments | — | — | — | — | — | 12,378,721 | 12,378,721 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (412,673 | ) | — | — | (412,673 | ) | |||||||||||||||||
Income tax benefit | — | — | — | 466,110 | — | — | 466,110 | |||||||||||||||||||
Dividends/distributions declared | 84,058 | 84 | 2,362,204 | (44,689,241 | ) | — | — | (42,326,953 | ) | |||||||||||||||||
Issuance of restricted stock | 309,430 | 309 | (309 | ) | — | — | — | — | ||||||||||||||||||
Balance, September 30, 2013 | 27,678,286 | $ | 27,678 | $ | 408,501,259 | $ | 10,432,313 | $ | 8,309,620 | $ | 13,994,635 | $ | 441,265,505 |
Nine Months Ended | Nine Months Ended | ||||||
September 30, 2013 | September 30, 2012 | ||||||
Cash flows from operating activities: | |||||||
Net increase in net assets resulting from operations | $ | 63,439,947 | $ | 44,475,495 | |||
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | |||||||
Purchases of portfolio investments | (112,405,369 | ) | (228,510,522 | ) | |||
Repayments received/sales of portfolio investments | 210,113,002 | 113,898,080 | |||||
Loan origination and other fees received | 1,221,431 | 3,565,896 | |||||
Net realized gain on investments | (6,336,680 | ) | (5,223,672 | ) | |||
Net unrealized (appreciation) depreciation on investments | (10,213,928 | ) | 1,420,124 | ||||
Net unrealized depreciation on foreign currency borrowings | 11,274 | — | |||||
Deferred income taxes | 1,437,780 | 591,712 | |||||
Payment-in-kind interest accrued, net of payments received | (1,459,624 | ) | (5,501,302 | ) | |||
Amortization of deferred financing fees | 1,154,021 | 789,479 | |||||
Loss on extinguishment of debt | 412,673 | 829,811 | |||||
Accretion of loan origination and other fees | (3,447,435 | ) | (2,397,275 | ) | |||
Accretion of loan discounts | (1,144,867 | ) | (1,482,707 | ) | |||
Accretion of discount on SBA-guaranteed debentures payable | 134,310 | 131,748 | |||||
Depreciation expense | 30,417 | 24,145 | |||||
Stock-based compensation | 2,817,267 | 2,074,927 | |||||
Changes in operating assets and liabilities: | |||||||
Interest and fees receivable | (1,235,105 | ) | (2,086,562 | ) | |||
Prepaid expenses | (382,869 | ) | 172,301 | ||||
Accounts payable and accrued liabilities | 723,138 | 768,607 | |||||
Interest payable | (2,063,979 | ) | (2,664,482 | ) | |||
Taxes payable | (3,170,740 | ) | (1,095,866 | ) | |||
Net cash provided by (used in) operating activities | 139,634,664 | (80,220,063 | ) | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (29,056 | ) | (20,667 | ) | |||
Net cash used in investing activities | (29,056 | ) | (20,667 | ) | |||
Cash flows from financing activities: | |||||||
Repayments of SBA-guaranteed debentures payable | (20,500,000 | ) | (40,810,000 | ) | |||
Borrowings under credit facility | 11,625,654 | 26,000,000 | |||||
Repayments of credit facility | — | (15,000,000 | ) | ||||
Proceeds from notes | — | 69,000,000 | |||||
Financing fees paid | (684,294 | ) | (3,572,059 | ) | |||
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 | (42,326,953 | ) | (38,146,302 | ) | |||
Net cash provided by (used in) financing activities | (51,885,593 | ) | 73,483,169 | ||||
Net increase in cash and cash equivalents | 87,720,015 | (6,757,561 | ) | ||||
Cash and cash equivalents, beginning of period | 72,300,423 | 66,868,340 | |||||
Cash and cash equivalents, end of period | $ | 160,020,438 | $ | 60,110,779 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 15,374,816 | $ | 12,999,240 | |||
Summary of non-cash financing transactions: | |||||||
Dividends paid through DRIP share issuances | $ | 2,362,288 | $ | 2,462,947 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 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) | $ | 12,649,575 | $ | 12,419,618 | $ | 12,419,618 | ||||||||
Common Units (1,250 units) | 1,250,000 | 1,273,000 | ||||||||||||||
12,649,575 | 13,669,618 | 13,692,618 | ||||||||||||||
Ambient Air Corporation (0%)* | Specialty Trade Contractors | Subordinated Note (0% Cash, 8% PIK, Due 06/20) | 464,399 | 66,993 | 187,000 | |||||||||||
464,399 | 66,993 | 187,000 | ||||||||||||||
Applied Consultants, Inc. (3%)* | Oil and Gas Pipeline Infrastructure Inspection Services | Subordinated Note (10% Cash, 2% PIK, Due 01/19) | 13,058,586 | 12,838,968 | 12,838,968 | |||||||||||
Class A Preferred (2,000,000 units) | 2,000,000 | 2,000,000 | ||||||||||||||
13,058,586 | 14,838,968 | 14,838,968 | ||||||||||||||
Assurance Operations Corporation (0%)* | Metal Fabrication | Common Stock (517 shares) | 516,867 | 925,000 | ||||||||||||
516,867 | 925,000 | |||||||||||||||
Audio and Video Labs Holdings, Inc. (3%)* | Manufacturer and Distributor for Independent Artists and Authors | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 13,201,434 | 12,967,751 | 12,967,751 | |||||||||||
Common Units (134 units) | 1,300,000 | 1,206,000 | ||||||||||||||
13,201,434 | 14,267,751 | 14,173,751 | ||||||||||||||
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) | 9,516,873 | 9,165,179 | 9,165,179 | |||||||||||
Common Stock Warrants (20 shares) | 492,000 | 362,000 | ||||||||||||||
9,516,873 | 9,657,179 | 9,527,179 | ||||||||||||||
Carolina Beverage Group, LLC (0%)* | Beverage Manufacturing and Packaging | Class B Units (11,974 units) | 119,735 | 1,930,000 | ||||||||||||
119,735 | 1,930,000 | |||||||||||||||
Charter Facilities Services, Inc. (2%)* | Retail, Restaurant, and Commercial Facilities Maintenance | Subordinated Note (10% Cash, 3% PIK, Due 07/18) | 8,272,988 | 8,151,488 | 8,151,488 | |||||||||||
Convertible Preferred Units (2,500 units) | 250,000 | 462,000 | ||||||||||||||
8,272,988 | 8,401,488 | 8,613,488 | ||||||||||||||
Chromaflo Technologies, LLC (0%)* | Colorant Manufacturer and Distributor | Preferred A Units (22,561 units) | 2,071,224 | 2,036,000 | ||||||||||||
2,071,224 | 2,036,000 | |||||||||||||||
Comverge, Inc. (4%)* | Provider of Intelligent Energy Management Solutions | Senior Note (12% Cash, 1% PIK, Due 05/18) | 15,505,583 | 15,244,256 | 15,244,256 | |||||||||||
Preferred Units (900 units) | 900,000 | 825,000 | ||||||||||||||
Common Units (1,000,000 units) | 100,000 | — | ||||||||||||||
15,505,583 | 16,244,256 | 16,069,256 | ||||||||||||||
Continental Anesthesia Management, LLC (2%)* | Physicians Management Services | Subordinated Note (14.0% Cash, Due 11/14) | 9,825,000 | 9,694,288 | 9,008,000 | |||||||||||
Warrant (263 shares) | 276,100 | — | ||||||||||||||
9,825,000 | 9,970,388 | 9,008,000 | ||||||||||||||
CRS Reprocessing, LLC (6%)* | Fluid Reprocessing Services | Subordinated Note (12% Cash, 2% PIK, Due 11/15) | 11,948,026 | 11,827,620 | 11,827,620 | |||||||||||
Subordinated Note (12% Cash, 2% PIK, Due 11/15) | 13,176,432 | 12,180,550 | 12,180,550 | |||||||||||||
Series C Preferred Units (30 units) | 288,342 | 431,000 | ||||||||||||||
Common Unit Warrant (664 units) | 1,759,556 | 2,566,000 | ||||||||||||||
Series D Preferred Units (16 units) | 107,074 | 169,000 | ||||||||||||||
25,124,458 | 26,163,142 | 27,174,170 | ||||||||||||||
DataSource Incorporated (2%)* | Print Supply Chain Management Services | Subordinated Note (12% Cash, 2% PIK, Due 01/18) | 8,715,117 | 8,574,673 | 8,574,673 | |||||||||||
Common Units (47 units) | 1,000,000 | 1,159,000 | ||||||||||||||
8,715,117 | 9,574,673 | 9,733,673 | ||||||||||||||
DCWV Acquisition Corporation (1%)* | Arts & Crafts and Home Decor Products Designer and Supplier | Subordinated Note (12% Cash, 3% PIK, Due 09/17) | 6,193,828 | 6,092,512 | 4,399,000 | |||||||||||
6,193,828 | 6,092,512 | 4,399,000 | ||||||||||||||
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) | 7,057,746 | 6,922,628 | 6,922,628 | |||||||||||
Preferred Series A Units (600,000 units) | 600,000 | 600,000 | ||||||||||||||
7,057,746 | 7,522,628 | 7,522,628 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 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) | $ | 7,013,376 | $ | 6,870,614 | $ | 6,870,614 | ||||||||
Common Stock (18,029 shares) | 183,562 | 204,000 | ||||||||||||||
Preferred Stock A (1,596 shares) | 1,596,126 | 1,758,000 | ||||||||||||||
7,013,376 | 8,650,302 | 8,832,614 | ||||||||||||||
Electronic Systems Protection, Inc. (0%)* | Power Protection Systems Manufacturing | Common Stock (570 shares) | 285,000 | 339,000 | ||||||||||||
285,000 | 339,000 | |||||||||||||||
Foodstate, Inc. (1%)* | Nutritional Supplement Manufacturing and Distribution | Subordinated Note (12% Cash, 3.8% PIK, Due 10/16) | 5,637,678 | 5,568,611 | 5,568,611 | |||||||||||
5,637,678 | 5,568,611 | 5,568,611 | ||||||||||||||
FrontStream Payments, Inc. (2%)* | Payment and Donation Management Product Service Provider | Senior Note (8% Cash, 6% PIK, Due 08/18) | 7,053,667 | 6,913,667 | 6,913,667 | |||||||||||
7,053,667 | 6,913,667 | 6,913,667 | ||||||||||||||
Frozen Specialties, Inc. (2%)* | Frozen Foods Manufacturer | Subordinated Note (11% Cash, 4% PIK, Due 05/17) | 10,783,729 | 10,754,687 | 10,754,687 | |||||||||||
10,783,729 | 10,754,687 | 10,754,687 | ||||||||||||||
Garden Fresh Restaurant Corp. (0%)* | Restaurant | Membership Units (5,000 units) | 500,000 | 250,000 | ||||||||||||
500,000 | 250,000 | |||||||||||||||
Glencoe Business Services Holdings (5%)* | Business Process Outsourcing Provider | Subordinated Note (12% Cash, 2.5% PIK, Due 06/18) | 20,383,790 | 20,024,276 | 20,024,276 | |||||||||||
20,383,790 | 20,024,276 | 20,024,276 | ||||||||||||||
Grindmaster-Cecilware Corp. (1%)* | Food Services Equipment Manufacturer | Subordinated Note (12% Cash, 6% PIK, Due 04/16) | 6,977,571 | 6,939,136 | 6,134,000 | |||||||||||
6,977,571 | 6,939,136 | 6,134,000 | ||||||||||||||
Hatch Chile Co., LLC (1%)* | Food Products Distributor | Senior Note (19% Cash, Due 07/15) | 3,150,000 | 3,098,400 | 3,098,400 | |||||||||||
Subordinated Note (14% Cash, Due 07/15) | 700,000 | 624,797 | 624,797 | |||||||||||||
Unit Purchase Warrant (5,265 units) | 149,800 | 336,000 | ||||||||||||||
3,850,000 | 3,872,997 | 4,059,197 | ||||||||||||||
Infrastructure Corporation of America, Inc. (3%)* | Roadway Maintenance, Repair and Engineering Services | Subordinated Note (12% Cash, 2% PIK, Due 09/18) | 11,135,478 | 9,594,083 | 9,594,083 | |||||||||||
Common Stock Purchase Warrant (417,593 shares) | 2,411,000 | 2,409,000 | ||||||||||||||
11,135,478 | 12,005,083 | 12,003,083 | ||||||||||||||
Inland Pipe Rehabilitation Holding Company LLC (2%)* | Cleaning and Repair Services | Subordinated Note (13% Cash, 2% PIK, Due 12/16) | 8,320,902 | 8,118,900 | 8,118,900 | |||||||||||
Membership Interest Purchase Warrant (3.0%) | 853,500 | 2,028,000 | ||||||||||||||
8,320,902 | 8,972,400 | 10,146,900 | ||||||||||||||
IOS Acquisitions, Inc. (4%)* | Provider of Oil Country Tubular Goods Inspections and Repair Services | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 17,264,366 | 16,958,780 | 16,958,780 | |||||||||||
Common Units (7,314 Class A Units) | 1,699,847 | 1,262,000 | ||||||||||||||
17,264,366 | 18,658,627 | 18,220,780 | ||||||||||||||
Library Systems & Services, LLC (0%)* | Municipal Business Services | Common Stock Warrants (112 shares) | 58,995 | 1,754,000 | ||||||||||||
58,995 | 1,754,000 | |||||||||||||||
Magpul Industries Corp. (2%)* | Firearm Accessories Manufacturer and Distributor | Preferred Units (1,470 units) | 1,470,000 | 1,939,000 | ||||||||||||
Common Units (30,000 units) | 30,000 | 5,961,000 | ||||||||||||||
1,500,000 | 7,900,000 | |||||||||||||||
Marine Acquisition Corp. (3%)* | Boat Steering System and Driver Control Provider | Subordinated Note (11.50% Cash, 2% PIK, Due 05/17) | 12,000,000 | 11,775,430 | 11,775,430 | |||||||||||
12,000,000 | 11,775,430 | 11,775,430 | ||||||||||||||
Media Storm, LLC (2%)* | Marketing Services | Subordinated Note (12% Cash, 2% PIK, Due 10/17) | 8,178,118 | 8,115,073 | 8,115,073 | |||||||||||
Membership Units (1,216,204 units) | 1,176,957 | 1,331,000 | ||||||||||||||
8,178,118 | 9,292,030 | 9,446,073 | ||||||||||||||
Media Temple, Inc. (3%)* | Web Hosting Services | Convertible Note (8% Cash, 6% PIK, Due 04/15) | 4,000,001 | 4,626,721 | 8,312,000 | |||||||||||
Common Stock Purchase Warrant (35,000 shares) | 1,251,000 | 3,636,000 | ||||||||||||||
4,000,001 | 5,877,721 | 11,948,000 | ||||||||||||||
Micross Solutions LLC (3%)* | Provider of Semiconductor Products and Services | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 10,777,399 | 10,634,493 | 10,634,493 | |||||||||||
Class A-2 Common Units (1,580,559 units) | 1,580,599 | 1,444,000 | ||||||||||||||
10,777,399 | 12,215,092 | 12,078,493 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 30, 2013 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Minco Technology Labs, LLC (0%)* | Semiconductor Distribution | Subordinated Note (6.5% Cash, 3.5% PIK, Due 12/16) | $ | 5,685,558 | $ | 5,468,103 | $ | 2,064,000 | ||||||||
Class A Units (5,000 HoldCo. units) | 500,000 | — | ||||||||||||||
Class A Units (3,907 OpCo. units) | 3,907 | — | ||||||||||||||
5,685,558 | 5,972,010 | 2,064,000 | ||||||||||||||
My Alarm Center, LLC (3%)* | Security Company | Subordinated Note (12% Cash, 2.5% PIK, Due 09/17) | 10,264,194 | 10,180,740 | 10,180,740 | |||||||||||
Preferred Units (2,000,000 units) | 2,000,000 | 2,100,000 | ||||||||||||||
10,264,194 | 12,180,740 | 12,280,740 | ||||||||||||||
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) | 13,128,317 | 12,954,478 | 12,954,478 | |||||||||||
Class A Limited Partnership Units (15,000 units) | 1,500,000 | 1,297,000 | ||||||||||||||
13,128,317 | 14,454,478 | 14,251,478 | ||||||||||||||
PowerDirect Marketing, LLC (2%)* | Marketing Services | Subordinated Note (12% Cash, 2% PIK, Due 12/16) | 7,273,117 | 6,787,285 | 6,787,285 | |||||||||||
Common Unit Purchase Warrants | 590,200 | 718,000 | ||||||||||||||
7,273,117 | 7,377,485 | 7,505,285 | ||||||||||||||
Sheplers, Inc. (3%)* | Western Apparel Retailer | Subordinated Note (13.2% Cash, Due 12/16) | 8,750,000 | 8,592,412 | 8,592,412 | |||||||||||
Subordinated Note (10% Cash, 7% PIK, Due 12/17) | 4,241,781 | 4,188,941 | 4,188,941 | |||||||||||||
12,991,781 | 12,781,353 | 12,781,353 | ||||||||||||||
Snacks Holding Corporation (2%)* | Trail Mixes and Nut Manufacturer and Marketer | Subordinated Note (12% Cash, 1% PIK, Due 5/20) | 5,017,930 | 4,981,303 | 4,981,303 | |||||||||||
Preferred A Units (22,368 units) | 1,053,897 | 2,366,000 | ||||||||||||||
Preferred B Units (10,380 units) | 25,337 | 160,000 | ||||||||||||||
Common Units (190,935 units) | 150,000 | 1,175,000 | ||||||||||||||
Common Stock Warrants (14,558 shares) | 14,558 | 127,000 | ||||||||||||||
5,017,930 | 6,225,095 | 8,809,303 | ||||||||||||||
Specialized Tech, Inc. (3%)*(4) | Sand and Particulate Removal Equipment Provider for Oil and Gas Companies | Subordinated Note (12% Cash, 2% PIK, Due 03/19) | 11,636,828 | 11,404,337 | 11,416,720 | |||||||||||
Common C Shares (2,000,000 shares) | 1,937,421 | 1,939,488 | ||||||||||||||
11,636,828 | 13,341,758 | 13,356,208 | ||||||||||||||
SRC, Inc. (1%)* | Specialty Chemical Manufacturer | Subordinated Notes (12% Cash, 2% PIK, Due 09/14) | 6,114,680 | 5,977,952 | 2,827,000 | |||||||||||
Common Stock Purchase Warrants | 123,800 | — | ||||||||||||||
6,114,680 | 6,101,752 | 2,827,000 | ||||||||||||||
Stella Environmental Services, LLC (0%)* | Waste Transfer Stations | Common Stock Purchase Warrants | 20,000 | 301,000 | ||||||||||||
20,000 | 301,000 | |||||||||||||||
Syrgis Holdings, Inc. (0%)* | Specialty Chemical Manufacturer | Class C Units (2,114 units) | 111,037 | 201,281 | ||||||||||||
111,037 | 201,281 | |||||||||||||||
The Krystal Company (0%)* | Quick Service Restaurant | Class A Units of Limited Partnership (2,000 units) | — | 1,375,000 | ||||||||||||
— | 1,375,000 | |||||||||||||||
TMR Automotive Service Supply, LLC (1%)* | Automotive Supplies | Subordinated Note (12% Cash, 1% PIK, Due 03/16) | 4,250,000 | 4,080,857 | 4,080,857 | |||||||||||
Unit Purchase Warrant (316,858 units) | 195,000 | 360,000 | ||||||||||||||
4,250,000 | 4,275,857 | 4,440,857 | ||||||||||||||
Tomich Brothers, LLC (3%)* | Squid and Wetfish Processor and Distributor | Subordinated Note (12% Cash, 3% PIK, Due 04/16) | 12,221,591 | 12,022,613 | 12,022,613 | |||||||||||
12,221,591 | 12,022,613 | 12,022,613 | ||||||||||||||
Top Knobs USA, Inc. (0%)* | Hardware Designer and Distributor | Common Stock (26,593 shares) | 750,000 | 1,325,000 | ||||||||||||
750,000 | 1,325,000 | |||||||||||||||
Trinity Consultants Holdings, Inc. (2%)* | Air Quality Consulting Services | Subordinated Note (12% Cash, 2.0% PIK, Due 04/19) | 8,284,654 | 8,158,889 | 8,158,889 | |||||||||||
Series A Preferred Stock (10,000 units) | 785,775 | 928,000 | ||||||||||||||
Common Stock (50,000 units) | 50,000 | 531,000 | ||||||||||||||
8,284,654 | 8,994,664 | 9,617,889 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 30, 2013 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
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. (3%)* | Pipeline Inspection Services | Subordinated Note (14%-17.5% Cash, Due 03/14) | $ | 5,810,588 | 5,751,505 | 5,751,505 | ||||||||||
Common Units (2 units) | 337,925 | 897,000 | ||||||||||||||
Common Stock Warrants (8 shares) | 321,000 | 4,578,000 | ||||||||||||||
5,810,588 | 6,410,430 | 11,226,505 | ||||||||||||||
United Biologics, LLC (2%)* | Allergy Immunotherapy | Subordinated Note (12% Cash, 2% PIK, Due 03/17) | 10,071,773 | 9,283,557 | 9,283,557 | |||||||||||
Class A Common Stock (177,935 shares) | 1,999,989 | 807,000 | ||||||||||||||
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 | 193,000 | ||||||||||||||
10,071,773 | 12,258,987 | 10,420,881 | ||||||||||||||
United Retirement Plan Consultants, Inc. (3%)* | Retirement Plan Administrator | Subordinated Note (12% Cash, 4% PIK, Due 09/16) | 12,717,950 | 12,544,070 | 12,544,070 | |||||||||||
Preferred A Units (90,000 units) | 900,000 | 1,065,000 | ||||||||||||||
Common Units (10,000 units) | 100,000 | — | ||||||||||||||
12,717,950 | 13,544,070 | 13,609,070 | ||||||||||||||
Water Pik, Inc. (2%)* | Branded Oral Health and Replacement Shower Head Supplier | Second Lien Term Loan (9.8% Cash, Due 01/21) | 10,000,000 | 9,657,688 | 9,657,688 | |||||||||||
10,000,000 | 9,657,688 | 9,657,688 | ||||||||||||||
Workforce Software, LLC (4%)* | Software Provider | Subordinated Note (11% Cash, 5% PIK, Due 11/16) | 8,000,000 | 7,185,735 | 7,185,735 | |||||||||||
Class B Preferred Units (1,020,000 units) | 1,020,000 | 1,217,000 | ||||||||||||||
Class C Preferred Units (624,253 units) | 1,250,000 | 2,285,000 | ||||||||||||||
Common Unit Purchase Warrants (2,434,749 units) | 952,300 | 8,539,000 | ||||||||||||||
8,000,000 | 10,408,035 | 19,226,735 | ||||||||||||||
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 | 20,063,926 | 20,063,926 | |||||||||||
Common Points (3,000 points) | 3,000,000 | 2,385,000 | ||||||||||||||
20,300,379 | 23,063,926 | 22,448,926 | ||||||||||||||
Xchange Technology Group, LLC (0%)* | Used and Refurbished IT Asset Supplier | Subordinated Note (8% Cash, Due 06/15) | 6,389,456 | 5,904,000 | 250,000 | |||||||||||
Royalty Rights | — | — | ||||||||||||||
6,389,456 | 5,904,000 | 250,000 | ||||||||||||||
Yellowstone Landscape Group, Inc. (7%)* | Landscaping Services | Subordinated Note (10% Cash, 2.5% PIK, Due 02/19) | 30,056,250 | 30,056,250 | 30,056,250 | |||||||||||
30,056,250 | 30,056,250 | 30,056,250 | ||||||||||||||
Subtotal Non–Control / Non–Affiliate Investments | 463,176,708 | 499,409,391 | 519,185,426 | |||||||||||||
Affiliate Investments: | ||||||||||||||||
All Aboard America! Holdings Inc. (2%)* | Motor Coach Operator | Subordinated Note (12% Cash, 3% PIK, Due 10/17) | 8,829,526 | 8,690,999 | 8,690,999 | |||||||||||
Convertible Preferred Interest in LLC | 1,500,000 | 1,653,000 | ||||||||||||||
8,829,526 | 10,190,999 | 10,343,999 | ||||||||||||||
American De-Rosa Lamparts, LLC and Hallmark Lighting (1%)* | Lighting Wholesale and Distribution | Subordinated Note (12% Cash, 6% PIK, Due 6/16) | 6,735,629 | 5,983,968 | 5,983,968 | |||||||||||
Membership Units (6,516 units) | 620,653 | — | ||||||||||||||
6,735,629 | 6,604,621 | 5,983,968 | ||||||||||||||
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 | |||||||||||||||