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 | ý | Accelerated filer | ¨ |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | ||
PART I – FINANCIAL INFORMATION | ||
Item 1. | ||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | ||
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
March 31, 2014 | December 31, 2013 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Investments at fair value: | |||||||
Non-Control / Non-Affiliate investments (cost of $565,681,884 and $528,021,069 at March 31, 2014 and December 31, 2013, respectively) | $ | 578,923,349 | $ | 546,043,946 | |||
Affiliate investments (cost of $96,920,921 and $107,418,051 at March 31, 2014 and December 31, 2013, respectively) | 97,897,491 | 107,536,534 | |||||
Control investments (cost of $18,254,446 and $18,378,665 at March 31, 2014 and December 31, 2013, respectively) | 13,189,579 | 10,792,709 | |||||
Total investments at fair value | 690,010,419 | 664,373,189 | |||||
Cash and cash equivalents | 90,838,247 | 133,304,346 | |||||
Interest and fees receivable | 3,705,941 | 5,255,760 | |||||
Prepaid expenses and other current assets | 3,473,128 | 831,544 | |||||
Deferred financing fees | 10,665,772 | 11,063,716 | |||||
Property and equipment, net | 76,425 | 60,525 | |||||
Total assets | $ | 798,769,932 | $ | 814,889,080 | |||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 1,743,559 | $ | 7,493,928 | |||
Interest payable | 1,093,587 | 3,017,645 | |||||
Taxes payable | — | 1,064,544 | |||||
Deferred income taxes | 3,610,610 | 3,514,376 | |||||
Borrowings under credit facility | 10,860,711 | 11,221,246 | |||||
Notes | 149,500,000 | 149,500,000 | |||||
SBA-guaranteed debentures payable | 193,330,441 | 193,285,211 | |||||
Total liabilities | 360,138,908 | 369,096,950 | |||||
Net Assets: | |||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 27,903,696 and 27,697,483 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively) | 27,904 | 27,697 | |||||
Additional paid in capital | 408,613,927 | 409,042,893 | |||||
Investment income in excess of distributions | 7,134,163 | 8,610,735 | |||||
Accumulated realized gains | 16,547,531 | 20,665,371 | |||||
Net unrealized appreciation | 6,307,499 | 7,445,434 | |||||
Total net assets | 438,631,024 | 445,792,130 | |||||
Total liabilities and net assets | $ | 798,769,932 | $ | 814,889,080 | |||
Net asset value per share | $ | 15.72 | $ | 16.10 |
Three Months Ended | Three Months Ended | |||||||
March 31, 2014 | March 31, 2013 | |||||||
Investment income: | ||||||||
Loan interest, fee and dividend income: | ||||||||
Non-Control / Non-Affiliate investments | $ | 16,507,765 | $ | 17,187,501 | ||||
Affiliate investments | 3,576,791 | 2,963,029 | ||||||
Control investments | 145,360 | 49,371 | ||||||
Total loan interest, fee and dividend income | 20,229,916 | 20,199,901 | ||||||
Payment-in-kind interest income: | ||||||||
Non-Control / Non-Affiliate investments | 2,997,777 | 3,250,548 | ||||||
Affiliate investments | 730,657 | 958,379 | ||||||
Control investments | 5,987 | 5,867 | ||||||
Total payment-in-kind interest income | 3,734,421 | 4,214,794 | ||||||
Interest income from cash and cash equivalent investments | 74,608 | 51,240 | ||||||
Total investment income | 24,038,945 | 24,465,935 | ||||||
Operating expenses: | ||||||||
Interest and other financing fees | 5,139,512 | 5,111,512 | ||||||
General and administrative expenses | 5,056,092 | 4,120,958 | ||||||
Total operating expenses | 10,195,604 | 9,232,470 | ||||||
Net investment income | 13,843,341 | 15,233,465 | ||||||
Realized and unrealized gains (losses) on investments and foreign currency borrowings: | ||||||||
Net realized gains (losses): | ||||||||
Non-Control / Non-Affiliate investments | 272,201 | 578,782 | ||||||
Affiliate investments | — | 1,274,000 | ||||||
Control investments | (208,553 | ) | — | |||||
Net realized gains (losses) | 63,648 | 1,852,782 | ||||||
Net unrealized appreciation (depreciation): | ||||||||
Investments | (1,498,470 | ) | 1,766,545 | |||||
Foreign currency borrowings | 360,535 | — | ||||||
Net unrealized appreciation (depreciation) | (1,137,935 | ) | 1,766,545 | |||||
Net realized and unrealized gains (losses) on investments and foreign currency borrowings | (1,074,287 | ) | 3,619,327 | |||||
Loss on extinguishment of debt | — | (412,673 | ) | |||||
Provision for taxes | (266,555 | ) | (20,303 | ) | ||||
Net increase in net assets resulting from operations | $ | 12,502,499 | $ | 18,419,816 | ||||
Net investment income per share—basic and diluted | $ | 0.50 | $ | 0.56 | ||||
Net increase in net assets resulting from operations per share—basic and diluted | $ | 0.45 | $ | 0.67 | ||||
Dividends per share | $ | 0.54 | $ | 0.54 | ||||
Capital gain distributions per share | $ | 0.15 | $ | — | ||||
Weighted average number of shares outstanding—basic and diluted | 27,805,108 | 27,433,290 |
Common Stock | Additional Paid In Capital | Investment Income in Excess of Distributions | Accumulated Realized Gains on Investments | 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 | — | — | — | 15,233,465 | — | — | 15,233,465 | |||||||||||||||||||
Stock-based compensation | — | — | 630,006 | — | — | — | 630,006 | |||||||||||||||||||
Realized gain (loss) on investments | — | — | — | — | 1,852,782 | (1,274,000 | ) | 578,782 | ||||||||||||||||||
Net unrealized gains on investments / foreign currency | — | — | — | — | — | 3,040,545 | 3,040,545 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (412,673 | ) | — | — | (412,673 | ) | |||||||||||||||||
Provision for taxes | — | — | — | (20,303 | ) | — | — | (20,303 | ) | |||||||||||||||||
Dividends / distributions | 28,577 | 28 | 796,999 | (14,868,791 | ) | — | — | (14,071,764 | ) | |||||||||||||||||
Issuance of restricted stock | 250,000 | 250 | (250 | ) | — | — | — | — | ||||||||||||||||||
Balance, March 31, 2013 | 27,563,375 | $ | 27,563 | $ | 404,748,852 | $ | 6,714,859 | $ | 3,825,722 | $ | 6,996,306 | $ | 422,313,302 |
Common Stock | Additional Paid In Capital | Investment Income in Excess of Distributions | Accumulated Realized Gains on Investments | Net Unrealized Appreciation | Total Net Assets | |||||||||||||||||||||
Number of Shares | Par Value | |||||||||||||||||||||||||
Balance, December 31, 2013 | 27,697,483 | $ | 27,697 | $ | 409,042,893 | $ | 8,610,735 | $ | 20,665,371 | $ | 7,445,434 | $ | 445,792,130 | |||||||||||||
Net investment income | — | — | — | 13,843,341 | — | — | 13,843,341 | |||||||||||||||||||
Stock-based compensation | — | — | 1,338,072 | — | — | — | 1,338,072 | |||||||||||||||||||
Realized gain (loss) on investments | — | — | — | — | 63,648 | (555,390 | ) | (491,742 | ) | |||||||||||||||||
Net unrealized loss on investments / foreign currency | — | — | — | — | — | (582,545 | ) | (582,545 | ) | |||||||||||||||||
Provision for taxes | — | — | — | (266,555 | ) | — | — | (266,555 | ) | |||||||||||||||||
Dividends / distributions | 27,108 | 27 | 707,263 | (15,053,358 | ) | (4,181,488 | ) | — | (18,527,556 | ) | ||||||||||||||||
Issuance of restricted stock | 273,000 | 273 | (273 | ) | — | — | — | — | ||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (93,895 | ) | (93 | ) | (2,474,028 | ) | — | — | — | (2,474,121 | ) | |||||||||||||||
Balance, March 31, 2014 | 27,903,696 | $ | 27,904 | $ | 408,613,927 | $ | 7,134,163 | $ | 16,547,531 | $ | 6,307,499 | $ | 438,631,024 |
Three Months Ended | Three Months Ended | ||||||
March 31, 2014 | March 31, 2013 | ||||||
Cash flows from operating activities: | |||||||
Net increase in net assets resulting from operations | $ | 12,502,499 | $ | 18,419,816 | |||
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | |||||||
Purchases of portfolio investments | (77,498,482 | ) | (10,259,545 | ) | |||
Repayments received/sales of portfolio investments | 51,808,786 | 9,274,946 | |||||
Loan origination and other fees received | 1,367,819 | 255,159 | |||||
Net realized gain on investments | (63,648 | ) | (1,852,782 | ) | |||
Net unrealized (appreciation) depreciation on investments | 1,402,236 | (1,325,156 | ) | ||||
Net unrealized depreciation on foreign currency borrowings | (360,535 | ) | — | ||||
Deferred income taxes | 96,234 | (441,389 | ) | ||||
Payment-in-kind interest accrued, net of payments received | (1,472,204 | ) | (3,685,061 | ) | |||
Amortization of deferred financing fees | 397,944 | 389,394 | |||||
Loss on extinguishment of debt | — | 412,673 | |||||
Accretion of loan origination and other fees | (835,536 | ) | (734,094 | ) | |||
Accretion of loan discounts | (346,201 | ) | (396,661 | ) | |||
Accretion of discount on SBA-guaranteed debentures payable | 45,230 | 44,259 | |||||
Depreciation expense | 9,652 | 9,172 | |||||
Stock-based compensation | 1,338,072 | 630,006 | |||||
Changes in operating assets and liabilities: | |||||||
Interest and fees receivable | 1,549,819 | (1,481,469 | ) | ||||
Prepaid expenses and other current assets | (2,641,584 | ) | (190,613 | ) | |||
Accounts payable and accrued liabilities | (5,750,369 | ) | (4,698,321 | ) | |||
Interest payable | (1,924,058 | ) | (2,070,906 | ) | |||
Taxes payable | (1,064,544 | ) | (2,976,193 | ) | |||
Net cash used in operating activities | (21,438,870 | ) | (676,765 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (25,552 | ) | (10,220 | ) | |||
Net cash used in investing activities | (25,552 | ) | (10,220 | ) | |||
Cash flows from financing activities: | |||||||
Repayments of SBA-guaranteed debentures payable | — | (20,500,000 | ) | ||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (2,474,121 | ) | — | ||||
Cash dividends/distributions paid | (18,527,556 | ) | (14,071,764 | ) | |||
Net cash used in financing activities | (21,001,677 | ) | (34,571,764 | ) | |||
Net decrease in cash and cash equivalents | (42,466,099 | ) | (35,258,749 | ) | |||
Cash and cash equivalents, beginning of period | 133,304,346 | 72,300,423 | |||||
Cash and cash equivalents, end of period | $ | 90,838,247 | $ | 37,041,674 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 6,404,312 | $ | 6,594,078 | |||
Summary of non-cash financing transactions: | |||||||
Dividends/distributions paid through DRIP share issuances | $ | 707,290 | $ | 797,027 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments March 31, 2014 | ||||||||||||||||
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) | $ | 12,745,683 | $ | 12,530,110 | $ | 12,530,110 | ||||||||
Common Units (1,250 units) | 1,250,000 | 1,565,000 | ||||||||||||||
12,745,683 | 13,780,110 | 14,095,110 | ||||||||||||||
AGM Automotive, LLC (3%)* | Auto Industry Interior Components Supplier | Subordinated Note (10% Cash, 3% PIK, Due 07/19) | 12,060,075 | 11,828,390 | 11,828,390 | |||||||||||
Class A Units (500 units) | 500,000 | 500,000 | ||||||||||||||
12,060,075 | 12,328,390 | 12,328,390 | ||||||||||||||
Ambient Air Corporation (0%)* | Specialty Trade Contractors | Subordinated Note (0% Cash, 8% PIK, Due 06/20) | 483,500 | 66,993 | 142,000 | |||||||||||
483,500 | 66,993 | 142,000 | ||||||||||||||
Applied-Cleveland Holdings, Inc. (5%)* | Oil and Gas Pipeline Infrastructure Inspection Services | Subordinated Note (10% Cash, 2% PIK, Due 06/19) | 18,000,000 | 17,712,461 | 17,712,461 | |||||||||||
Class A Preferred Units (2,129,032 units) | 2,129,032 | 2,129,032 | ||||||||||||||
18,000,000 | 19,841,493 | 19,841,493 | ||||||||||||||
Assurance Operations Corporation (0%)* | Metal Fabrication | Common Stock (517 shares) | 516,867 | 1,159,000 | ||||||||||||
516,867 | 1,159,000 | |||||||||||||||
Audio and Video Labs Holdings, Inc. (3%)* | Manufacturer and Distributor for Independent Artists and Authors | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 13,335,479 | 13,120,683 | 13,120,683 | |||||||||||
Common Units (138 units) | 1,300,000 | 1,531,000 | ||||||||||||||
13,335,479 | 14,420,683 | 14,651,683 | ||||||||||||||
BFN Operations LLC (4%)* | Wholesale Grower and Distributor of Container Grown Shrubs, Trees and Plants | Subordinated Note (13% Cash, 4% PIK, Due 11/17) | 17,725,664 | 17,392,688 | 17,392,688 | |||||||||||
17,725,664 | 17,392,688 | 17,392,688 | ||||||||||||||
Botanical Laboratories, Inc. (0%)* | Nutritional Supplement Manufacturing and Distribution | Common Unit Warrants (998,680 units) | 237,301 | 240,000 | ||||||||||||
237,301 | 240,000 | |||||||||||||||
Cafe Enterprises, Inc. (3%)* | Restaurant | Subordinated Note (12% Cash, 2% PIK, Due 09/19) | 12,006,667 | 11,766,667 | 11,766,667 | |||||||||||
Series C Preferred Stock (10,000 shares) | 1,000,000 | 1,000,000 | ||||||||||||||
12,006,667 | 12,766,667 | 12,766,667 | ||||||||||||||
Capital Contractors, Inc. (2%)* | Janitorial and Facilities Maintenance Services | Subordinated Notes (12% Cash, 2% PIK, Due 12/15) | 9,613,505 | 9,332,086 | 9,332,086 | |||||||||||
Common Stock Warrants (20 shares) | 492,000 | 250,000 | ||||||||||||||
9,613,505 | 9,824,086 | 9,582,086 | ||||||||||||||
Carepoint Resources, Inc. (5%)* | Business Process Outsourcing Provider | Subordinated Note (12% Cash, 2.5% PIK, Due 06/18) | 23,661,777 | 23,302,602 | 23,302,602 | |||||||||||
23,661,777 | 23,302,602 | 23,302,602 | ||||||||||||||
Carolina Beverage Group, LLC (0%)* | Beverage Manufacturing and Packaging | Class B Units (11,974 units) | 119,735 | 1,549,000 | ||||||||||||
119,735 | 1,549,000 | |||||||||||||||
Chromaflo Technologies Parent LP (3%)* | Colorant Manufacturer and Distributor | Subordinated Note (8.3% Cash, Due 06/20) | 10,000,000 | 9,951,473 | 9,951,473 | |||||||||||
Class A Units (22,561 units) | — | 2,239,000 | ||||||||||||||
10,000,000 | 9,951,473 | 12,190,473 | ||||||||||||||
Comverge, Inc. (4%)* | Provider of Intelligent Energy Management Solutions | Senior Note (12% Cash, Due 05/18) | 15,505,583 | 15,265,377 | 15,265,377 | |||||||||||
Preferred Units (900 units) | 900,000 | 1,001,000 | ||||||||||||||
Common Units (1,000,000 units) | 100,000 | 138,000 | ||||||||||||||
15,505,583 | 16,265,377 | 16,404,377 | ||||||||||||||
Continental Anesthesia Management, LLC (2%)* | Physicians Management Services | Subordinated Note (14% Cash, Due 09/14) | 9,762,500 | 9,689,754 | 9,266,000 | |||||||||||
Warrant (263 shares) | 276,100 | — | ||||||||||||||
9,762,500 | 9,965,854 | 9,266,000 | ||||||||||||||
CRS Reprocessing, LLC (6%)* | Fluid Reprocessing Services | Subordinated Note (12% Cash, 2% PIK, Due 11/15) | 12,069,344 | 11,974,073 | 11,974,073 | |||||||||||
Subordinated Note (12% Cash, 2% PIK, Due 11/15) | 13,310,223 | 12,539,268 | 12,539,268 | |||||||||||||
Series C Preferred Units (30 units) | 288,342 | 446,000 | ||||||||||||||
Common Unit Warrant (664 units) | 1,759,556 | 2,649,000 | ||||||||||||||
Series D Preferred Units (16 units) | 107,074 | 174,000 | ||||||||||||||
Series E Preferred Units (5 units) | 31,651 | 47,000 | ||||||||||||||
25,379,567 | 26,699,964 | 27,829,341 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments March 31, 2014 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Danville Materials, LLC (2%)* | Manufacturer of Dental Products | Senior Note (10% Cash, Due 12/18) | $ | 8,000,000 | $ | 7,846,682 | $ | 7,846,682 | ||||||||
Common Units (45,492 units) | 500,000 | 500,000 | ||||||||||||||
8,000,000 | 8,346,682 | 8,346,682 | ||||||||||||||
DataSource Incorporated (1%)* | Print Supply Chain Management Services | Subordinated Note (12% Cash, 2% PIK, Due 01/18) | 4,791,459 | 4,664,116 | 4,664,116 | |||||||||||
Common Units (47 units) | 1,000,000 | 1,037,000 | ||||||||||||||
4,791,459 | 5,664,116 | 5,701,116 | ||||||||||||||
DCWV Acquisition Corporation (1%)* | Arts & Crafts and Home Decor Products Designer and Supplier | Subordinated Note (12% Cash, 3% PIK, Due 09/17) | 6,288,363 | 6,150,322 | 3,962,000 | |||||||||||
6,288,363 | 6,150,322 | 3,962,000 | ||||||||||||||
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) | 7,128,619 | 7,003,709 | 7,003,709 | |||||||||||
Preferred series A Units (600,000 units) | 600,000 | 357,000 | ||||||||||||||
7,128,619 | 7,603,709 | 7,360,709 | ||||||||||||||
Eckler's Holdings, Inc. (2%)* | Restoration Parts and Accessories for Classic Cars and Trucks | Subordinated Note (11% Cash, 4% PIK, Due 07/18) | 7,156,402 | 7,024,688 | 7,024,688 | |||||||||||
Common Stock (18,029 shares) | 183,562 | — | ||||||||||||||
Preferred Stock A (1,596 shares) | 1,596,126 | 1,569,000 | ||||||||||||||
7,156,402 | 8,804,376 | 8,593,688 | ||||||||||||||
Electronic Systems Protection, Inc. (0%)* | Power Protection Systems Manufacturing | Common Stock (570 shares) | 285,000 | 296,000 | ||||||||||||
285,000 | 296,000 | |||||||||||||||
Flowchem Ltd. (2%)* | Provider of Support Services to Crude Oil Pipeline Operators | Subordinated Note (11% Cash, 2% PIK, Due 06/19) | 7,799,315 | 7,649,536 | 7,649,536 | |||||||||||
Common Units (1,000,000 Units) | 1,000,000 | 1,000,000 | ||||||||||||||
7,799,315 | 8,649,536 | 8,649,536 | ||||||||||||||
Foodstate, Inc. (1%)* | Nutritional Supplement Manufacturing and Distribution | Subordinated Note (12% Cash, 3.8% PIK, Due 10/16) | 5,745,066 | 5,684,976 | 5,684,976 | |||||||||||
5,745,066 | 5,684,976 | 5,684,976 | ||||||||||||||
FrontStream Payments, Inc. (3%)* | Payment and Donation Management Product Service Provider | Senior Note (8% Cash, 6% PIK, Due 08/18) | 11,201,738 | 10,999,232 | 10,999,232 | |||||||||||
11,201,738 | 10,999,232 | 10,999,232 | ||||||||||||||
Frontstreet Facility Solutions, Inc. (2%)* | Retail, Restaurant and Commercial Facilities Maintenance | Subordinated Note (10% Cash, 3% PIK, Due 07/18) | 8,398,937 | 8,287,852 | 6,955,000 | |||||||||||
Convertible Preferred Units (2,500 units) | 250,000 | — | ||||||||||||||
8,398,937 | 8,537,852 | 6,955,000 | ||||||||||||||
Frozen Specialties, Inc. (2%)* | Frozen Foods Manufacturer | Subordinated Note (11% Cash, 5% PIK, Due 05/17) | 11,059,204 | 10,912,118 | 7,427,000 | |||||||||||
11,059,204 | 10,912,118 | 7,427,000 | ||||||||||||||
Garden Fresh Restaurant Holding, LLC (0%)* | Restaurant | Class A Units (5,000 units) | 500,000 | 246,000 | ||||||||||||
500,000 | 246,000 | |||||||||||||||
Grindmaster-Cecilware Corp. (2%)* | Food Services Equipment Manufacturer | Subordinated Note (12% Cash, 6% PIK, Due 04/16) | 7,191,916 | 7,165,604 | 7,165,604 | |||||||||||
7,191,916 | 7,165,604 | 7,165,604 | ||||||||||||||
Hatch Chile Co., LLC (2%)* | Food Products Distributor | Senior Note (19% Cash, Due 11/18) | 3,071,250 | 3,032,725 | 3,032,725 | |||||||||||
Subordinated Note (14% Cash, Due 11/18) | 3,363,750 | 3,116,715 | 3,116,715 | |||||||||||||
Unit Purchase Warrant (7,817 units) | 295,800 | 686,000 | ||||||||||||||
6,435,000 | 6,445,240 | 6,835,440 | ||||||||||||||
Infrastructure Corporation of America, Inc. (3%)* | Roadway Maintenance, Repair and Engineering Services | Subordinated Note (12% Cash, 2% PIK, Due 09/18) | 11,248,546 | 9,823,600 | 9,823,600 | |||||||||||
Common Stock Purchase Warrant (487,877 shares) | 2,411,000 | 2,201,000 | ||||||||||||||
11,248,546 | 12,234,600 | 12,024,600 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments March 31, 2014 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Inland Pipe Rehabilitation Holding Company LLC (2%)* | Cleaning and Repair Services | Subordinated Note (13% Cash, 2.5% PIK, Due 12/16) | $ | 8,442,465 | $ | 8,266,345 | $ | 8,266,345 | ||||||||
Membership Interest Purchase Warrant (3.0%) | 853,500 | 1,127,000 | ||||||||||||||
8,442,465 | 9,119,845 | 9,393,345 | ||||||||||||||
IOS Acquisitions, Inc. (5%)* | Provider of Oil Country Tubular Goods Inspections and Repair Services | Subordinated Note (12% Cash, 3.8% PIK, Due 06/18) | 19,685,778 | 19,366,411 | 19,366,411 | |||||||||||
Common Units (7,314 Class A Units) | 1,699,847 | 1,325,000 | ||||||||||||||
19,685,778 | 21,066,258 | 20,691,411 | ||||||||||||||
Justrite Manufacturing Company, LLC (3%)* | Storage Product Developer and Supplier for Hazardous Materials | Subordinated Note (10% Cash, 2% PIK, Due 07/19) | 14,553,972 | 14,344,008 | 14,344,008 | |||||||||||
Class A Common Units (1,268 Units) | 118,110 | 118,110 | ||||||||||||||
Class A Preferred Units (132 Units) | 131,890 | 131,890 | ||||||||||||||
14,553,972 | 14,594,008 | 14,594,008 | ||||||||||||||
Library Systems & Services, LLC (0%)* | Municipal Business Services | Common Stock Warrants (112 shares) | 58,995 | 1,884,000 | ||||||||||||
58,995 | 1,884,000 | |||||||||||||||
Magpul Industries Corp. (2%)* | Firearm Accessories Manufacturer and Distributor | Preferred Units (1,470 units) | 1,470,000 | 2,074,000 | ||||||||||||
Common Units (30,000 units) | 30,000 | 7,771,000 | ||||||||||||||
1,500,000 | 9,845,000 | |||||||||||||||
Media Storm, LLC (3%)* | Marketing Services | Subordinated Note (10% Cash, Due 08/19) | 11,000,000 | 10,915,763 | 10,915,763 | |||||||||||
Membership Units (1,216,204 units) | 1,176,957 | 1,688,000 | ||||||||||||||
11,000,000 | 12,092,720 | 12,603,763 | ||||||||||||||
Micross Solutions LLC (3%)* | Provider of Semiconductor Products and Services | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 10,886,830 | 10,755,474 | 10,755,474 | |||||||||||
Class A-2 Common Units (1,580,559 units) | 1,580,599 | 1,378,000 | ||||||||||||||
10,886,830 | 12,336,073 | 12,133,474 | ||||||||||||||
Minco Technology Labs, LLC (0%)* | Semiconductor Distribution | Subordinated Note (6.5% Cash, 3.5% PIK, Due 12/16) | 5,881,876 | 5,478,942 | 1,994,000 | |||||||||||
Class A Units (5,000 HoldCo. units) | 500,000 | — | ||||||||||||||
Class A Units (3,907 OpCo. units) | 3,907 | — | ||||||||||||||
5,881,876 | 5,982,849 | 1,994,000 | ||||||||||||||
My Alarm Center, LLC (0%)* | Security Company | Preferred Units (2,000,000 units) | 2,000,000 | 2,079,000 | ||||||||||||
2,000,000 | 2,079,000 | |||||||||||||||
Novolyte Technologies, Inc. (0%)* | Specialty Manufacturing | Common Units (24,522 units) | 43,905 | 41,000 | ||||||||||||
43,905 | 41,000 | |||||||||||||||
On Event Services, LLC (2%)* | Equipment Rentals to Conference Venues and Live Events | Subordinated Note (10% Cash, 2% PIK, Due 01/19) | 9,796,042 | 9,608,676 | 9,608,676 | |||||||||||
9,796,042 | 9,608,676 | 9,608,676 | ||||||||||||||
Performance Health & Wellness Holdings, Inc. (2%)* | Designer and Manufacturer of Rehabilitation and Wellness Products | Subordinated Note (12% Cash, 1% PIK, Due 04/19) | 6,684,660 | 6,522,378 | 6,522,378 | |||||||||||
Class A Limited Partnership Units (15,000 units) | 1,500,000 | 1,604,000 | ||||||||||||||
6,684,660 | 8,022,378 | 8,126,378 | ||||||||||||||
PetroLiance, LLC (3%)* | Lubricant, Fuel and Ancillary Products Distributor | Subordinated Note (12% Cash, 1% PIK, Due 08/19) | 12,015,004 | 11,782,863 | 11,782,863 | |||||||||||
Class A Units (1,142,857 Units) | 1,200,000 | 1,200,000 | ||||||||||||||
12,015,004 | 12,982,863 | 12,982,863 | ||||||||||||||
PowerDirect Marketing, LLC (2%)* | Marketing Services | Subordinated Note (13% Cash, 2% PIK, Due 12/16) | 7,346,980 | 6,937,261 | 6,937,261 | |||||||||||
Common Unit Purchase Warrants | 590,200 | 644,000 | ||||||||||||||
7,346,980 | 7,527,461 | 7,581,261 | ||||||||||||||
Sheplers, Inc. (3%)* | Western Apparel Retailer | Subordinated Note (13.2% Cash, Due 12/16) | 8,750,000 | 8,612,574 | 8,612,574 | |||||||||||
Subordinated Note (10% Cash, 7% PIK, Due 12/17) | 4,389,464 | 4,343,691 | 4,343,691 | |||||||||||||
13,139,464 | 12,956,265 | 12,956,265 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments March 31, 2014 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Snacks Holding Corporation (2%)* | Trail Mixes and Nut Manufacturer and Marketer | Subordinated Note (12% Cash, 1% PIK, Due 05/20) | $ | 5,043,470 | $ | 5,008,670 | $ | 5,008,670 | ||||||||
Preferred A Units (22,368 units) | 1,053,897 | 2,588,000 | ||||||||||||||
Preferred B Units (10,380 units) | 25,337 | 226,000 | ||||||||||||||
Common Units (190,935 units) | 150,000 | 1,654,000 | ||||||||||||||
Common Stock Warrants (14,558 shares) | 14,558 | 179,000 | ||||||||||||||
5,043,470 | 6,252,462 | 9,655,670 | ||||||||||||||
SPC Partners V, LP (0%)*(4) | Multi-Sector Holdings | 0.7% Limited Partnership Interest | 545,801 | 545,801 | ||||||||||||
545,801 | 545,801 | |||||||||||||||
Specialized Desanders, Inc. (3%)* (4) | Sand and Particulate Removal Equipment Provider for Oil and Gas Companies | Subordinated Notes (12% Cash, 2% PIK, Due 03/19) | 11,750,144 | 11,533,108 | 11,129,920 | |||||||||||
Common C Shares (2,000,000 shares) | 1,937,421 | 1,832,000 | ||||||||||||||
11,750,144 | 13,470,529 | 12,961,920 | ||||||||||||||
Stella Environmental Services, LLC (0%)* | Waste Transfer Stations | Common Stock Purchase Warrants | 20,000 | 478,000 | ||||||||||||
20,000 | 478,000 | |||||||||||||||
The Krystal Company (0%)* | Restaurant | Class A Units of Limited Partnership (2,000 units) | — | 2,075,000 | ||||||||||||
— | 2,075,000 | |||||||||||||||
Tomich Brothers, LLC (3%)* | Squid and Wetfish Processor and Distributor | Subordinated Note (5% Cash, 10% PIK, Due 04/16) | 12,699,312 | 12,535,569 | 11,065,000 | |||||||||||
12,699,312 | 12,535,569 | 11,065,000 | ||||||||||||||
Top Knobs USA, Inc. (0%)* | Hardware Designer and Distributor | Common Stock (26,593 shares) | 402,828 | 1,428,828 | ||||||||||||
402,828 | 1,428,828 | |||||||||||||||
Trinity Consultants Holdings, Inc. (2%)* | Air Quality Consulting Services | Subordinated Note (12% Cash, 2% PIK, Due 04/19) | 8,368,775 | 8,254,742 | 8,254,742 | |||||||||||
Series A Preferred Stock (10,000 units) | 785,775 | 989,000 | ||||||||||||||
Common Stock (50,000 units) | 50,000 | 787,000 | ||||||||||||||
8,368,775 | 9,090,517 | 10,030,742 | ||||||||||||||
TrustHouse Services Group, Inc. (0%)* | Food Management Services | Class A Units (1,557 units) | 69,302 | 195,881 | ||||||||||||
Class B Units (82 units) | 3,647 | 7,089 | ||||||||||||||
Class E Units (838 units) | 101,532 | 112,555 | ||||||||||||||
174,481 | 315,525 | |||||||||||||||
United Biologics, LLC (3%)* | Allergy Immunotherapy | Subordinated Note (12% Cash, 2% PIK, Due 03/17) | 12,675,846 | 11,931,277 | 11,931,277 | |||||||||||
Class A Common Stock (177,935 shares) | 1,999,989 | 851,000 | ||||||||||||||
Class A-1 Common Stock (18,818 shares) | 137,324 | 137,000 | ||||||||||||||
Class A-1 Common Kicker Stock (14,114 shares) | — | — | ||||||||||||||
Class A & Class B Unit Purchase Warrants | 838,117 | 200,000 | ||||||||||||||
12,675,846 | 14,906,707 | 13,119,277 | ||||||||||||||
United Retirement Plan Consultants, Inc. (3%)* | Retirement Plan Administrator | Subordinated Note (12% Cash, 4% PIK, Due 09/16) | 12,976,436 | 12,827,752 | 12,827,752 | |||||||||||
Preferred A Units (90,000 units) | 900,000 | 978,000 | ||||||||||||||
Common Units (10,000 units) | 100,000 | — | ||||||||||||||
12,976,436 | 13,827,752 | 13,805,752 | ||||||||||||||
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 | 9,673,630 | 9,673,630 | |||||||||||
10,000,000 | 9,673,630 | 9,673,630 | ||||||||||||||
Workforce Software, LLC (5%)* | Software Provider | Subordinated Note (11% Cash, 5% PIK, Due 11/16) | 8,000,000 | 7,293,099 | 8,000,000 | |||||||||||
Class B Preferred Units (1,020,000 units) | 1,020,000 | 1,214,000 | ||||||||||||||
Class C Preferred Units (624,253 units) | 1,250,000 | 2,739,000 | ||||||||||||||
Common Unit Purchase Warrants (2,434,749 units) | 952,300 | 10,000,000 | ||||||||||||||
8,000,000 | 10,515,399 | 21,953,000 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments March 31, 2014 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
WSO Holdings, LP (5%)* | Organic/Fair Trade Sugar, Syrup, Nectar and Honey Producer | Subordinated Note (12% Cash, 2% PIK, Due 10/17) | $ | 20,198,264 | $ | 19,985,624 | $ | 19,985,624 | ||||||||
Common Points (3,000 points) | 3,000,000 | 2,306,000 | ||||||||||||||
20,198,264 | 22,985,624 | 22,291,624 | ||||||||||||||
Xchange Technology Group, LLC (0%)* | Used and Refurbished IT Asset Supplier | Subordinated Note (8% Cash, Due 06/15) | 6,658,231 | 5,904,000 | — | |||||||||||
Royalty Rights | — | — | ||||||||||||||
6,658,231 | 5,904,000 | — | ||||||||||||||
Yellowstone Landscape Group, Inc. (5%)* | Landscaping Services | Subordinated Note (10% Cash, 2.5% PIK, Due 02/19) | 20,000,001 | 20,020,643 | 20,020,643 | |||||||||||
20,000,001 | 20,020,643 | 20,020,643 | ||||||||||||||
Subtotal Non–Control / Non–Affiliate Investments | 530,528,115 | 565,681,884 | 578,923,349 | |||||||||||||
Affiliate Investments: | ||||||||||||||||
All Aboard America! Holdings Inc. (2%)* | Motor Coach Operator | Subordinated Note (12% Cash, 3% PIK, Due (10/17) | 8,964,289 | 8,839,713 | 8,839,713 | |||||||||||
Convertible Preferred Interest in LLC | 1,500,000 | 1,500,000 | ||||||||||||||
8,964,289 | 10,339,713 | 10,339,713 | ||||||||||||||
American De-Rosa Lamparts, LLC and Hallmark Lighting (2%)* | Lighting Wholesale and Distribution | Subordinated Note (12% Cash, 6% PIK, Due 06/16) | 6,942,541 | 6,920,471 | 6,920,471 | |||||||||||
Membership Units (8,364 units) | 620,653 | — | ||||||||||||||
6,942,541 | 7,541,124 | 6,920,471 | ||||||||||||||
AP Services, Inc. (0%)* | Fluid Sealing Supplies and Services | Class A Units (933 units) | 156,953 | 253,004 | ||||||||||||
Class B Units (496 units) | — | 134,381 | ||||||||||||||
156,953 | 387,385 | |||||||||||||||
Asset Point, LLC (2%)* | Asset Management Software Provider | Senior Note (12% Cash, 5% PIK, Due 03/14) | 6,716,285 | 6,716,283 | 6,716,283 | |||||||||||
Subordinated Note (12% Cash, 2% PIK, Due 07/15) | 646,368 |