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. | ||
June 30, 2014 | December 31, 2013 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Investments at fair value: | |||||||
Non-Control / Non-Affiliate investments (cost of $600,208,555 and $528,021,069 at June 30, 2014 and December 31, 2013, respectively) | $ | 612,117,936 | $ | 546,043,946 | |||
Affiliate investments (cost of $109,139,313 and $107,418,051 at June 30, 2014 and December 31, 2013, respectively) | 110,910,292 | 107,536,534 | |||||
Control investments (cost of $18,241,876 and $18,378,665 at June 30, 2014 and December 31, 2013, respectively) | 13,248,925 | 10,792,709 | |||||
Total investments at fair value | 736,277,153 | 664,373,189 | |||||
Cash and cash equivalents | 79,593,085 | 133,304,346 | |||||
Interest and fees receivable | 4,069,696 | 5,255,760 | |||||
Prepaid expenses and other current assets | 592,716 | 831,544 | |||||
Deferred financing fees | 10,263,133 | 11,063,716 | |||||
Property and equipment, net | 75,238 | 60,525 | |||||
Total assets | $ | 830,871,021 | $ | 814,889,080 | |||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 3,216,190 | $ | 7,493,928 | |||
Interest payable | 3,022,415 | 3,017,645 | |||||
Taxes payable | 408,686 | 1,064,544 | |||||
Deferred income taxes | 4,317,331 | 3,514,376 | |||||
Borrowings under credit facility | 31,255,980 | 11,221,246 | |||||
Notes | 149,500,000 | 149,500,000 | |||||
SBA-guaranteed debentures payable | 193,376,003 | 193,285,211 | |||||
Total liabilities | 385,096,605 | 369,096,950 | |||||
Commitments and contingencies (Note 6) | |||||||
Net Assets: | |||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 27,939,795 and 27,697,483 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively) | 27,940 | 27,697 | |||||
Additional paid in capital | 410,823,140 | 409,042,893 | |||||
Investment income in excess of distributions | 6,132,527 | 8,610,735 | |||||
Accumulated realized gains | 24,051,059 | 20,665,371 | |||||
Net unrealized appreciation | 4,739,750 | 7,445,434 | |||||
Total net assets | 445,774,416 | 445,792,130 | |||||
Total liabilities and net assets | $ | 830,871,021 | $ | 814,889,080 | |||
Net asset value per share | $ | 15.95 | $ | 16.10 |
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||||
Investment income: | |||||||||||||||
Loan interest, fee and dividend income: | |||||||||||||||
Non-Control / Non-Affiliate investments | $ | 17,292,568 | $ | 19,696,422 | $ | 33,800,333 | $ | 36,883,923 | |||||||
Affiliate investments | 2,799,592 | 3,246,452 | 6,376,383 | 6,209,481 | |||||||||||
Control investments | 643,835 | 46,194 | 789,195 | 95,565 | |||||||||||
Total loan interest, fee and dividend income | 20,735,995 | 22,989,068 | 40,965,911 | 43,188,969 | |||||||||||
Payment-in-kind interest income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 3,404,283 | 3,234,925 | 6,402,060 | 6,485,473 | |||||||||||
Affiliate investments | 736,516 | 981,731 | 1,467,173 | 1,940,110 | |||||||||||
Control investments | 6,084 | 5,961 | 12,071 | 11,828 | |||||||||||
Total payment-in-kind interest income | 4,146,883 | 4,222,617 | 7,881,304 | 8,437,411 | |||||||||||
Interest income from cash and cash equivalent investments | 56,888 | 44,463 | 131,496 | 95,703 | |||||||||||
Total investment income | 24,939,766 | 27,256,148 | 48,978,711 | 51,722,083 | |||||||||||
Operating expenses: | |||||||||||||||
Interest and other financing fees | 5,158,543 | 4,989,523 | 10,298,055 | 10,101,035 | |||||||||||
General and administrative expenses | 5,122,875 | 5,994,702 | 10,178,967 | 10,115,660 | |||||||||||
Total operating expenses | 10,281,418 | 10,984,225 | 20,477,022 | 20,216,695 | |||||||||||
Net investment income | 14,658,348 | 16,271,923 | 28,501,689 | 31,505,388 | |||||||||||
Realized and unrealized gains (losses) on investments and foreign currency borrowings: | |||||||||||||||
Net realized gains (losses): | |||||||||||||||
Non-Control / Non-Affiliate investments | 11,462,275 | 2,428,668 | 11,734,476 | 3,007,450 | |||||||||||
Affiliate investments | 228,252 | 3,321,999 | 228,252 | 4,595,999 | |||||||||||
Control investments | — | (2,290,919 | ) | (208,553 | ) | (2,290,919 | ) | ||||||||
Net realized gains (losses) | 11,690,527 | 3,459,748 | 11,754,175 | 5,312,530 | |||||||||||
Net unrealized appreciation (depreciation): | |||||||||||||||
Investments | (1,172,480 | ) | 2,116,796 | (2,670,950 | ) | 3,883,341 | |||||||||
Foreign currency borrowings | (395,269 | ) | — | (34,734 | ) | — | |||||||||
Net unrealized appreciation (depreciation) | (1,567,749 | ) | 2,116,796 | (2,705,684 | ) | 3,883,341 | |||||||||
Net realized and unrealized gains (losses) on investments and foreign currency borrowings | 10,122,778 | 5,576,544 | 9,048,491 | 9,195,871 | |||||||||||
Loss on extinguishment of debt | — | — | — | (412,673 | ) | ||||||||||
Provision for taxes | (586,788 | ) | — | (853,343 | ) | (20,303 | ) | ||||||||
Net increase in net assets resulting from operations | $ | 24,194,338 | $ | 21,848,467 | $ | 36,696,837 | $ | 40,268,283 | |||||||
Net investment income per share—basic and diluted | $ | 0.53 | $ | 0.59 | $ | 1.02 | $ | 1.15 | |||||||
Net increase in net assets resulting from operations per share—basic and diluted | $ | 0.87 | $ | 0.79 | $ | 1.32 | $ | 1.46 | |||||||
Dividends per share | $ | 0.54 | $ | 0.54 | $ | 1.08 | $ | 1.08 | |||||||
Capital gain distributions per share | $ | 0.15 | $ | — | $ | 0.30 | $ | — | |||||||
Weighted average number of shares outstanding—basic and diluted | 27,910,468 | 27,569,524 | 27,857,788 | 27,501,407 |
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 | — | — | — | 31,505,388 | — | — | 31,505,388 | |||||||||||||||||||
Stock-based compensation | — | — | 1,675,896 | — | — | — | 1,675,896 | |||||||||||||||||||
Realized gain (loss) on investments | — | — | — | — | 5,312,530 | (3,863,315 | ) | 1,449,215 | ||||||||||||||||||
Net unrealized gains on investments / foreign currency | — | — | — | — | — | 7,746,656 | 7,746,656 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (412,673 | ) | — | — | (412,673 | ) | |||||||||||||||||
Provision for taxes | — | — | — | (20,303 | ) | — | — | (20,303 | ) | |||||||||||||||||
Dividends / distributions | 57,042 | 57 | 1,570,104 | (29,757,555 | ) | — | — | (28,187,394 | ) | |||||||||||||||||
Issuance of restricted stock | 258,410 | 258 | (258 | ) | — | — | — | — | ||||||||||||||||||
Balance, June 30, 2013 | 27,600,250 | $ | 27,600 | $ | 406,567,839 | $ | 8,098,018 | $ | 7,285,470 | $ | 9,113,102 | $ | 431,092,029 |
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 | — | — | — | 28,501,689 | — | — | 28,501,689 | |||||||||||||||||||
Stock-based compensation | — | — | 2,828,410 | — | — | — | 2,828,410 | |||||||||||||||||||
Realized gain (loss) on investments | — | — | — | — | 11,754,175 | (11,616,980 | ) | 137,195 | ||||||||||||||||||
Net unrealized loss on investments / foreign currency | — | — | — | — | — | 8,911,296 | 8,911,296 | |||||||||||||||||||
Provision for taxes | — | — | — | (853,343 | ) | — | — | (853,343 | ) | |||||||||||||||||
Dividends / distributions | 53,577 | 54 | 1,426,147 | (30,126,554 | ) | (8,368,487 | ) | — | (37,068,840 | ) | ||||||||||||||||
Issuance of restricted stock | 282,630 | 282 | (282 | ) | — | — | — | — | ||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (93,895 | ) | (93 | ) | (2,474,028 | ) | — | — | — | (2,474,121 | ) | |||||||||||||||
Balance, June 30, 2014 | 27,939,795 | $ | 27,940 | $ | 410,823,140 | $ | 6,132,527 | $ | 24,051,059 | $ | 4,739,750 | $ | 445,774,416 |
Six Months Ended | Six Months Ended | ||||||
June 30, 2014 | June 30, 2013 | ||||||
Cash flows from operating activities: | |||||||
Net increase in net assets resulting from operations | $ | 36,696,837 | $ | 40,268,283 | |||
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | |||||||
Purchases of portfolio investments | (164,840,342 | ) | (37,112,821 | ) | |||
Repayments received/sales of portfolio investments | 105,026,498 | 111,695,347 | |||||
Loan origination and other fees received | 2,838,426 | 621,440 | |||||
Net realized gain on investments | (11,754,175 | ) | (5,312,530 | ) | |||
Net unrealized depreciation (appreciation) on investments | 1,867,995 | (4,914,099 | ) | ||||
Net unrealized depreciation on foreign currency borrowings | 34,734 | — | |||||
Deferred income taxes | 802,955 | 1,030,758 | |||||
Payment-in-kind interest accrued, net of payments received | (2,614,188 | ) | (5,263,335 | ) | |||
Amortization of deferred financing fees | 800,583 | 766,221 | |||||
Loss on extinguishment of debt | — | 412,673 | |||||
Accretion of loan origination and other fees | (1,783,603 | ) | (2,243,128 | ) | |||
Accretion of loan discounts | (644,575 | ) | (765,628 | ) | |||
Accretion of discount on SBA-guaranteed debentures payable | 90,792 | 88,843 | |||||
Depreciation expense | 20,114 | 19,085 | |||||
Stock-based compensation | 2,828,410 | 1,675,896 | |||||
Changes in operating assets and liabilities: | |||||||
Interest and fees receivable | 1,186,064 | (1,528,838 | ) | ||||
Prepaid expenses and other current assets | 238,828 | (106,645 | ) | ||||
Accounts payable and accrued liabilities | (4,277,738 | ) | (1,954,469 | ) | |||
Interest payable | 4,770 | (181,387 | ) | ||||
Taxes payable | (655,858 | ) | (2,976,193 | ) | |||
Net cash (provided by) used in operating activities | (34,133,473 | ) | 94,219,473 | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (34,827 | ) | (17,145 | ) | |||
Net cash used in investing activities | (34,827 | ) | (17,145 | ) | |||
Cash flows from financing activities: | |||||||
Repayments of SBA-guaranteed debentures payable | — | (20,500,000 | ) | ||||
Borrowings under credit facility | 20,000,000 | — | |||||
Financing fees paid | — | (684,294 | ) | ||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (2,474,121 | ) | — | ||||
Cash dividends/distributions paid | (37,068,840 | ) | (28,187,394 | ) | |||
Net cash used in financing activities | (19,542,961 | ) | (49,371,688 | ) | |||
Net increase (decrease) in cash and cash equivalents | (53,711,261 | ) | 44,830,640 | ||||
Cash and cash equivalents, beginning of period | 133,304,346 | 72,300,423 | |||||
Cash and cash equivalents, end of period | $ | 79,593,085 | $ | 117,131,063 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 9,008,748 | $ | 9,084,547 | |||
Summary of non-cash financing transactions: | |||||||
Dividends/distributions paid through DRIP share issuances | $ | 1,426,201 | $ | 1,570,161 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 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 Producer | Subordinated Note (12% Cash, 1.5% PIK, Due 06/19) | $ | 12,794,010 | $ | 12,585,954 | $ | 12,585,954 | ||||||||
Common Units (1,250 units) | 1,250,000 | 1,961,000 | ||||||||||||||
12,794,010 | 13,835,954 | 14,546,954 | ||||||||||||||
AGM Automotive, LLC (6%)* | Auto Industry Interior Components Supplier | Subordinated Note (10% Cash, 3% PIK, Due 07/19) | 25,195,122 | 24,711,960 | 24,711,960 | |||||||||||
Class A Units (1,500 units) | 1,500,000 | 1,500,000 | ||||||||||||||
25,195,122 | 26,211,960 | 26,211,960 | ||||||||||||||
Applied-Cleveland Holdings, Inc. (6%)* | Oil and Gas Pipeline Infrastructure Inspection Services | Subordinated Note (10% Cash, 2% PIK, Due 06/19) | 23,000,000 | 22,649,249 | 22,649,249 | |||||||||||
Class A Preferred Units (2,129,032 units) | 2,129,032 | 2,129,032 | ||||||||||||||
23,000,000 | 24,778,281 | 24,778,281 | ||||||||||||||
Assurance Operations Corporation (0%)* | Metal Fabrication | Common Stock (517 shares) | 516,867 | 1,327,000 | ||||||||||||
516,867 | 1,327,000 | |||||||||||||||
Audio and Video Labs Holdings, Inc. (3%)* | Manufacturer and Distributor for Independent Artists and Authors | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 13,403,010 | 13,198,084 | 13,198,084 | |||||||||||
Common Stock (138 shares) | 1,300,000 | 1,624,000 | ||||||||||||||
13,403,010 | 14,498,084 | 14,822,084 | ||||||||||||||
BFN Operations LLC (4%)* | Wholesale Grower and Distributor of Container Grown Shrubs, Trees and Plants | Subordinated Note (13% Cash, 4% PIK, Due 11/17) | 17,905,495 | 17,590,096 | 17,590,096 | |||||||||||
17,905,495 | 17,590,096 | 17,590,096 | ||||||||||||||
Botanical Laboratories, Inc. (0%)* | Nutritional Supplement Manufacturing and Distribution | Common Stock Warrants (998,680 shares) | 237,301 | 240,000 | ||||||||||||
237,301 | 240,000 | |||||||||||||||
Cafe Enterprises, Inc. (3%)* | Restaurant | Subordinated Note (12% Cash, 2% PIK, Due 09/19) | 12,067,469 | 11,835,328 | 11,835,328 | |||||||||||
Series C Preferred Stock (10,000 shares) | 1,000,000 | 1,000,000 | ||||||||||||||
12,067,469 | 12,835,328 | 12,835,328 | ||||||||||||||
Capital Contractors, Inc. (2%)* | Janitorial and Facilities Maintenance Services | Subordinated Notes (12% Cash, 2% PIK, Due 12/15) | 9,662,189 | 9,417,496 | 9,417,496 | |||||||||||
Common Stock Warrants (20 shares) | 492,000 | 200,000 | ||||||||||||||
9,662,189 | 9,909,496 | 9,617,496 | ||||||||||||||
Carolina Beverage Group, LLC (0%)* | Beverage Manufacturing and Packaging | Class B Units (11,974 units) | 119,735 | 1,547,000 | ||||||||||||
119,735 | 1,547,000 | |||||||||||||||
Chromaflo Technologies Parent LP (3%)* | Colorant Manufacturer and Distributor | Second Lien Term Loan (8.3% Cash, Due 06/20) | 10,000,000 | 9,952,976 | 9,952,976 | |||||||||||
Class A Units (22,561 units) | — | 2,245,000 | ||||||||||||||
10,000,000 | 9,952,976 | 12,197,976 | ||||||||||||||
Comverge, Inc. (4%)* | Provider of Intelligent Energy Management Solutions | Senior Note (12% Cash, Due 05/18) | 15,505,583 | 15,276,415 | 15,276,415 | |||||||||||
Preferred Stock (900 shares) | 900,000 | 987,000 | ||||||||||||||
Common Stock (1,000,000 shares) | 100,000 | — | ||||||||||||||
15,505,583 | 16,276,415 | 16,263,415 | ||||||||||||||
Continental Anesthesia Management, LLC (2%)* | Physicians Management Services | Subordinated Note (8% Cash, 6% PIK Due 09/14) | 9,978,738 | 9,936,501 | 9,936,501 | |||||||||||
Warrant (263 shares) | 276,100 | 164,000 | ||||||||||||||
9,978,738 | 10,212,601 | 10,100,501 | ||||||||||||||
CRS Reprocessing, LLC (6%)* | Fluid Reprocessing Services | Subordinated Note (12% Cash, 2% PIK, Due 11/15) | 12,130,464 | 12,066,015 | 12,066,015 | |||||||||||
Subordinated Note (12% Cash, 2% PIK, Due 11/15) | 13,377,627 | 12,705,812 | 12,705,812 | |||||||||||||
Series C Preferred Units (30 units) | 288,342 | 395,000 | ||||||||||||||
Common Unit Warrant (664 units) | 1,759,556 | 1,064,000 | ||||||||||||||
Series D Preferred Units (16 units) | 107,074 | 147,000 | ||||||||||||||
Series E Preferred Units (5 units) | 31,651 | 47,000 | ||||||||||||||
25,508,091 | 26,958,450 | 26,424,827 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 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 | $ | 7,853,531 | $ | 7,853,531 | ||||||||
Common Units (45,492 units) | 500,000 | 500,000 | ||||||||||||||
8,000,000 | 8,353,531 | 8,353,531 | ||||||||||||||
DataSource Incorporated (1%)* | Print Supply Chain Management Services | Subordinated Note (12% Cash, 2% PIK, Due 01/18) | 4,815,683 | 4,695,187 | 4,695,187 | |||||||||||
Common Units (47 units) | 1,000,000 | 910,000 | ||||||||||||||
4,815,683 | 5,695,187 | 5,605,187 | ||||||||||||||
DCWV Acquisition Corporation (1%)* | Arts & Crafts and Home Decor Products Designer and Supplier | Subordinated Note (12% Cash, 3% PIK, Due 09/17) (5) | 6,336,170 | 6,155,655 | 4,279,000 | |||||||||||
6,336,170 | 6,155,655 | 4,279,000 | ||||||||||||||
DialogueDirect, Inc. (5%)* | Business Process Outsourcing Provider | Subordinated Note (12% Cash, 2.5% PIK, Due 06/18) | 23,811,621 | 23,468,952 | 23,468,952 | |||||||||||
23,811,621 | 23,468,952 | 23,468,952 | ||||||||||||||
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) | 7,164,322 | 7,044,747 | 7,044,747 | |||||||||||
Preferred series A Units (600,000 units) | 600,000 | 237,000 | ||||||||||||||
7,164,322 | 7,644,747 | 7,281,747 | ||||||||||||||
Eckler's Holdings, Inc. (2%)* | Restoration Parts and Accessories for Classic Cars and Trucks | Subordinated Note (11% Cash, 4% PIK, Due 07/18) | 7,229,005 | 7,103,044 | 7,103,044 | |||||||||||
Common Stock (18,029 shares) | 183,562 | — | ||||||||||||||
Preferred Stock A (1,596 shares) | 1,596,126 | 1,449,000 | ||||||||||||||
7,229,005 | 8,882,732 | 8,552,044 | ||||||||||||||
Electronic Systems Protection, Inc. (0%)* | Power Protection Systems Manufacturing | Common Stock (570 shares) | 285,000 | 333,000 | ||||||||||||
285,000 | 333,000 | |||||||||||||||
Flowchem Ltd. (2%)* | Provider of Support Services to Crude Oil Pipeline Operators | Subordinated Note (11% Cash, 2% PIK, Due 06/19) | 7,838,205 | 7,693,791 | 7,693,791 | |||||||||||
Common Units (1,000,000 units) | 1,000,000 | 938,000 | ||||||||||||||
7,838,205 | 8,693,791 | 8,631,791 | ||||||||||||||
FrontStream Payments, Inc. (3%)* | Payment and Donation Management Product Service Provider | Senior Note (8% Cash, 6% PIK, Due 08/18) | 11,338,074 | 11,145,268 | 11,145,268 | |||||||||||
11,338,074 | 11,145,268 | 11,145,268 | ||||||||||||||
Frontstreet Facility Solutions, Inc. (2%)* | Retail, Restaurant and Commercial Facilities Maintenance | Subordinated Note (10% Cash, 3% PIK, Due 07/18) | 8,462,629 | 8,356,936 | 7,108,000 | |||||||||||
Convertible Preferred Units (2,500 units) | 250,000 | — | ||||||||||||||
8,462,629 | 8,606,936 | 7,108,000 | ||||||||||||||
Frozen Specialties, Inc. (2%)* | Frozen Foods Manufacturer | Subordinated Note (10% Cash, 4% PIK, Due 05/17) (5) | 11,673,192 | 11,673,192 | 9,456,000 | |||||||||||
11,673,192 | 11,673,192 | 9,456,000 | ||||||||||||||
Garden Fresh Restaurant Holding, LLC (0%)* | Restaurant | Class A Units (5,000 units) | 500,000 | 136,000 | ||||||||||||
500,000 | 136,000 | |||||||||||||||
Grindmaster-Cecilware Corp. (2%)* | Food Services Equipment Manufacturer | Subordinated Note (12% Cash, 6% PIK, Due 04/16) | 7,301,546 | 7,281,547 | 7,281,547 | |||||||||||
7,301,546 | 7,281,547 | 7,281,547 | ||||||||||||||
Hatch Chile Co., LLC (2%)* | Food Products Distributor | Subordinated Note (19% Cash, Due 11/18) | 3,031,875 | 3,000,357 | 3,000,357 | |||||||||||
Subordinated Note (14% Cash, Due 11/18) | 3,320,625 | 3,091,762 | 3,091,762 | |||||||||||||
Unit Purchase Warrant (7,817 units) | 295,800 | 649,000 | ||||||||||||||
6,352,500 | 6,387,919 | 6,741,119 | ||||||||||||||
Hickman's Egg Ranch, Inc. (3%)* | Egg Producer | Subordinated Note (12% Cash, 1% PIK, Due 06/19) | 15,004,583 | 14,704,583 | 14,704,583 | |||||||||||
15,004,583 | 14,704,583 | 14,704,583 | ||||||||||||||
HKW Capital Partners (0%)*(4) | Multi-Sector Holdings | Limited Partnership Interest | 599,225 | 599,225 | ||||||||||||
599,225 | 599,225 | |||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 2014 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Infrastructure Corporation of America, Inc. (3%)* | Roadway Maintenance, Repair and Engineering Services | Subordinated Note (12% Cash, 2% PIK, Due 09/18) | $ | 11,305,509 | $ | 9,941,421 | $ | 9,941,421 | ||||||||
Common Stock Purchase Warrant (487,877 shares) | 2,411,000 | 2,390,000 | ||||||||||||||
11,305,509 | 12,352,421 | 12,331,421 | ||||||||||||||
Inland Pipe Rehabilitation Holding Company LLC (2%)* | Cleaning and Repair Services | Subordinated Note (13% Cash, 2.5% PIK, Due 12/16) | 8,495,817 | 8,333,272 | 8,333,272 | |||||||||||
Membership Interest Purchase Warrant (3.0%) | 853,500 | 835,000 | ||||||||||||||
8,495,817 | 9,186,772 | 9,168,272 | ||||||||||||||
IOS Acquisitions, Inc. (5%)* | Provider of Oil Country Tubular Goods Inspections and Repair Services | Subordinated Note (12% Cash, 3.5% PIK, Due 06/18) | 19,860,456 | 19,555,765 | 19,555,765 | |||||||||||
Common Units (7,314 Class A Units) | 1,699,847 | 1,438,000 | ||||||||||||||
19,860,456 | 21,255,612 | 20,993,765 | ||||||||||||||
Justrite Manufacturing Company, LLC (3%)* | Storage Product Developer and Supplier for Hazardous Materials | Subordinated Note (10% Cash, 2% PIK, Due 07/19) | 14,627,550 | 14,425,310 | 14,425,310 | |||||||||||
Class A Common Units (1,268 units) | 118,110 | 118,110 | ||||||||||||||
Class A Preferred Units (132 units) | 131,890 | 131,890 | ||||||||||||||
14,627,550 | 14,675,310 | 14,675,310 | ||||||||||||||
Library Systems & Services, LLC (0%)* | Municipal Business Services | Common Unit Warrants (112 units) | 58,995 | 2,205,000 | ||||||||||||
58,995 | 2,205,000 | |||||||||||||||
Magpul Industries Corp. (2%)* | Firearm Accessories Manufacturer and Distributor | Preferred Units (1,470 units) | 1,470,000 | 2,146,000 | ||||||||||||
Common Units (30,000 units) | 30,000 | 6,457,000 | ||||||||||||||
1,500,000 | 8,603,000 | |||||||||||||||
Media Storm, LLC (2%)* | Marketing Services | Subordinated Note (10% Cash, Due 08/19) | 8,000,000 | 7,920,035 | 7,920,035 | |||||||||||
Membership Units (1,216,204 units) | 1,176,957 | 1,773,000 | ||||||||||||||
8,000,000 | 9,096,992 | 9,693,035 | ||||||||||||||
Micross Solutions LLC (3%)* | Provider of Semiconductor Products and Services | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 10,941,962 | 10,816,642 | 10,816,642 | |||||||||||
Class A-2 Common Units (1,580,559 units) | 1,580,599 | 1,563,000 | ||||||||||||||
10,941,962 | 12,397,241 | 12,379,642 | ||||||||||||||
Minco Technology Labs, LLC (1%)* | Semiconductor Distribution | Subordinated Note (6.5% Cash, 3.5% PIK, Due 12/16) (6) | 6,030,557 | 5,484,627 | 3,000,000 | |||||||||||
Class A Units (5,000 HoldCo. units) | 500,000 | — | ||||||||||||||
Class A Units (3,907 OpCo. units) | 3,907 | — | ||||||||||||||
6,030,557 | 5,988,534 | 3,000,000 | ||||||||||||||
My Alarm Center, LLC (0%)* | Security Company | Preferred Units (2,000,000 units) | 2,000,000 | 1,947,000 | ||||||||||||
2,000,000 | 1,947,000 | |||||||||||||||
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) | 9,845,484 | 9,665,943 | 9,665,943 | |||||||||||
9,845,484 | 9,665,943 | 9,665,943 | ||||||||||||||
PCX Aerostructures, LLC (5%)* | Aerospace Component Manufacturer | Subordinated Note (11% Cash, 3% PIK, Due 04/19) | 19,130,125 | 18,763,736 | 18,763,736 | |||||||||||
Series A Preferred Stock (3,980 shares) | 3,980,000 | 3,980,000 | ||||||||||||||
Class A Common Stock (80,000 shares) | 20,000 | 20,000 | ||||||||||||||
19,130,125 | 22,763,736 | 22,763,736 | ||||||||||||||
Performance Health & Wellness Holdings, Inc. (2%)* | Designer and Manufacturer of Rehabilitation and Wellness Products | Subordinated Note (12% Cash, 1% PIK, Due 04/19) | 6,701,556 | 6,545,314 | 6,614,000 | |||||||||||
Class A Limited Partnership Units (15,000 units) | 1,500,000 | 1,733,000 | ||||||||||||||
6,701,556 | 8,045,314 | 8,347,000 | ||||||||||||||
PetroLiance, LLC (3%)* | Lubricant, Fuel and Ancillary Products Distributor | Subordinated Note (12% Cash, 0.5% PIK, Due 08/19) | 12,030,196 | 11,806,150 | 11,806,150 | |||||||||||
Class A Units (1,142,857 Units) | 1,200,000 | 2,117,000 | ||||||||||||||
12,030,196 | 13,006,150 | 13,923,150 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 2014 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2) | Principal Amount | Cost | Fair Value(3) | |||||||||||
PowerDirect Marketing, LLC (1%)* | Marketing Services | Subordinated Note (13% Cash, 2% PIK, Due 12/16) | $ | 6,982,947 | $ | 6,613,149 | $ | 5,990,000 | ||||||||
Common Unit Purchase Warrants | 590,200 | — | ||||||||||||||
6,982,947 | 7,203,349 | 5,990,000 | ||||||||||||||
Sheplers, Inc. (3%)* | Western Apparel Retailer | Subordinated Note (13.2% Cash, Due 12/16) | 8,750,000 | 8,623,153 | 8,623,153 | |||||||||||
Subordinated Note (10% Cash, 7% PIK, Due 12/17) | 4,467,763 | 4,425,657 | 4,425,657 | |||||||||||||
13,217,763 | 13,048,810 | 13,048,810 | ||||||||||||||
Snacks Holding Corporation (3%)* | Trail Mixes and Nut Manufacturer and Marketer | Subordinated Note (12% Cash, 1% PIK, Due 05/20) | 5,056,219 | 5,022,373 | 5,056,219 | |||||||||||
Preferred A Units (22,368 units) | 1,053,897 | 3,189,000 | ||||||||||||||
Preferred B Units (10,380 units) | 25,337 | 744,000 | ||||||||||||||
Common Units (190,935 units) | 150,000 | 5,451,000 | ||||||||||||||
Common Stock Warrants (14,558 shares) | 14,558 | 591,000 | ||||||||||||||
5,056,219 | 6,266,165 | 15,031,219 | ||||||||||||||
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 Note (12% Cash, 2% PIK, Due 03/19) | 11,806,363 | 11,597,404 | 11,230,663 | |||||||||||
Class C Common Stock (2,000,000 shares) | 1,937,421 | 2,699,000 | ||||||||||||||
11,806,363 | 13,534,825 | 13,929,663 | ||||||||||||||
Stella Environmental Services, LLC (0%)* | Waste Transfer Stations | Common Stock Purchase Warrants (2,500 shares) | 20,000 | 819,000 | ||||||||||||
20,000 | 819,000 | |||||||||||||||
The Krystal Company (1%)* | Restaurant | Class A Units of Limited Partnership (2,000 units) | — | 3,338,000 | ||||||||||||
— | 3,338,000 | |||||||||||||||
Tomich Brothers, LLC (3%)* | Squid and Wetfish Processor and Distributor | Subordinated Note (7.5% Cash, 7.5% PIK, Due 04/16) | 12,934,198 | 12,788,869 | 11,459,000 | |||||||||||
12,934,198 | 12,788,869 | 11,459,000 | ||||||||||||||
Top Knobs USA, Inc. (0%)* | Hardware Designer and Distributor | Common Stock (26,593 shares) | 402,828 | 1,557,828 | ||||||||||||
402,828 | 1,557,828 | |||||||||||||||
Trinity Consultants Holdings, Inc. (2%)* | Air Quality Consulting Services | Subordinated Note (12% Cash, 2% PIK, Due 04/19) | 8,411,155 | 8,303,253 | 8,303,253 | |||||||||||
Series A Preferred Stock (10,000 units) | 785,775 | 1,033,000 | ||||||||||||||
Common Stock (50,000 units) | 50,000 | 764,000 | ||||||||||||||
8,411,155 | 9,139,028 | 10,100,253 | ||||||||||||||
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) | 12,740,037 | 12,047,932 | 12,047,932 | |||||||||||
Class A Common Stock (177,935 shares) | 1,999,989 | 1,760,000 | ||||||||||||||
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 | 360,000 | ||||||||||||||
12,740,037 | 15,023,362 | 14,304,932 | ||||||||||||||
United Retirement Plan Consultants, Inc. (0%)* | Retirement Plan Administrator | Preferred A Units (90,000 units) | 900,000 | 978,000 | ||||||||||||
Common Units (10,000 units) | 100,000 | 60,000 | ||||||||||||||
1,000,000 | 1,038,000 | |||||||||||||||