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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

__________________________________________________________

Form 10-Q

__________________________________________________________

(Mark One)

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

For the quarterly period ended June 30, 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 August 6, 2014 was 27,939,795.

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TRIANGLE CAPITAL CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Consolidated Balance Sheet as of June 30, 2014 and Consolidated Balance Sheet as of December 31, 2013	3
	Unaudited Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2014 and 2013	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Six Months Ended June 30, 2014 and 2013	5
	Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2014 and 2013	6
	Unaudited Consolidated Schedule of Investments as of June 30, 2014	7
	Consolidated Schedule of Investments as of December 31, 2013	14
	Notes to Unaudited Consolidated Financial Statements	20
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	47
Item 4.	Controls and Procedures	48
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	49
Item 1A.	Risk Factors	49
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	49
Item 3.	Defaults Upon Senior Securities	49
Item 4.	Mine Safety Disclosures	49
Item 5.	Other Information	49
Item 6.	Exhibits	50
Signatures		51
Exhibits

2

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

TRIANGLE CAPITAL CORPORATION

Consolidated Balance Sheets

 

	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

See accompanying notes.

3

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Operations

	Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
	June 30, 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

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	—			—				—				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

See accompanying notes.

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows

 

	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

See accompanying notes.

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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

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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

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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

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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