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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

__________________________________________________________

Form 10-Q

__________________________________________________________

(Mark One)

ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2014

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	ý	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

The number of shares outstanding of the registrant’s Common Stock on May 6, 2014 was 27,903,696.

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TRIANGLE CAPITAL CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Consolidated Balance Sheet as of March 31, 2014 and Consolidated Balance Sheet as of December 31, 2013	3
	Unaudited Consolidated Statements of Operations for the Three Months Ended March 31, 2014 and 2013	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Three Months Ended March 31, 2014 and 2013	5
	Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2014 and 2013	6
	Unaudited Consolidated Schedule of Investments as of March 31, 2014	7
	Consolidated Schedule of Investments as of December 31, 2013	13
	Notes to Unaudited Consolidated Financial Statements	19
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	32
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

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

TRIANGLE CAPITAL CORPORATION

Consolidated Balance Sheets

 

	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

See accompanying notes.

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Operations

	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

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				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

See accompanying notes.

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows

 

	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

See accompanying notes.

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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

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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

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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

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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

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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