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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 September 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 November 5, 2014 was 32,906,347.

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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 September 30, 2014 and Consolidated Balance Sheet as of December 31, 2013	3
	Unaudited Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2014 and 2013	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Nine Months Ended September 30, 2014 and 2013	5
	Unaudited Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2014 and 2013	6
	Unaudited Consolidated Schedule of Investments as of September 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	48
Item 4.	Controls and Procedures	49
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

 

	September 30, 2014				December 31, 2013
	(Unaudited)
Assets:
Investments at fair value:
Non-Control / Non-Affiliate investments (cost of $702,046,342 and $528,021,069 at September 30, 2014 and December 31, 2013, respectively)	$	683,606,374			$	546,043,946
Affiliate investments (cost of $143,870,717 and $107,418,051 at September 30, 2014 and December 31, 2013, respectively)	146,887,741				107,536,534
Control investments (cost of $17,223,222 and $18,378,665 at September 30, 2014 and December 31, 2013, respectively)	11,128,000				10,792,709
Total investments at fair value	841,622,115				664,373,189
Cash and cash equivalents	84,012,141				133,304,346
Interest and fees receivable	4,491,235				5,255,760
Prepaid expenses and other current assets	643,796				831,544
Deferred financing fees	10,639,376				11,063,716
Property and equipment, net	97,757				60,525
Total assets	$	941,506,420			$	814,889,080
Liabilities:
Accounts payable and accrued liabilities	$	3,800,689			$	7,493,928
Interest payable	1,089,844				3,017,645
Taxes payable	428,033				1,064,544
Deferred income taxes	3,751,194				3,514,376
Borrowings under credit facility	10,754,616				11,221,246
Notes	149,500,000				149,500,000
SBA-guaranteed debentures payable	224,732,468				193,285,211
Total liabilities	394,056,844				369,096,950
Commitments and contingencies (Note 6)
Net Assets:
Common stock, $0.001 par value per share (150,000,000 shares authorized, 32,906,347 and 27,697,483 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively)	32,906				27,697
Additional paid in capital	540,704,815				409,042,893
Investment income in excess of distributions	13,283,742				8,610,735
Accumulated realized gains	17,826,437				20,665,371
Net unrealized appreciation (depreciation)	(24,398,324		)		7,445,434
Total net assets	547,449,576				445,792,130
Total liabilities and net assets	$	941,506,420			$	814,889,080
Net asset value per share	$	16.64			$	16.10

See accompanying notes.

3

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Operations

 

	Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
	September 30, 2014				September 30, 2013				September 30, 2014				September 30, 2013
Investment income:
Loan interest, fee and dividend income:
Non-Control / Non-Affiliate investments	$	17,482,268			$	19,933,576			$	51,282,601			$	56,817,499
Affiliate investments	3,436,198				2,710,338				9,812,581				8,919,819
Control investments	139,742				50,334				928,937				145,899
Total loan interest, fee and dividend income	21,058,208				22,694,248				62,024,119				65,883,217
Payment-in-kind interest income:
Non-Control / Non-Affiliate investments	3,087,464				3,591,182				9,489,524				10,076,655
Affiliate investments	668,201				942,609				2,135,374				2,882,719
Control investments	—				6,058				12,071				17,886
Total payment-in-kind interest income	3,755,665				4,539,849				11,636,969				12,977,260
Interest income from cash and cash equivalent investments	61,897				81,071				193,393				176,774
Total investment income	24,875,770				27,315,168				73,854,481				79,037,251
Operating expenses:
Interest and other financing fees	5,292,967				4,997,620				15,591,022				15,098,655
General and administrative expenses	4,166,165				5,537,980				14,345,132				15,653,640
Total operating expenses	9,459,132				10,535,600				29,936,154				30,752,295
Net investment income	15,416,638				16,779,568				43,918,327				48,284,956
Realized and unrealized gains (losses) on investments and foreign currency borrowings:
Net realized gains (losses):
Non-Control / Non-Affiliate investments	5,231,548				1,006,339				16,966,024				4,013,789
Affiliate investments	(200,000		)		17,811				28,252				4,613,810
Control investments	—				—				(208,553		)		(2,290,919		)
Net realized gains (losses)	5,031,548				1,024,150				16,785,723				6,336,680
Net unrealized appreciation (depreciation):
Investments	(29,639,438		)		4,892,807				(32,310,388		)		8,776,148
Foreign currency borrowings	501,364				(11,274		)		466,630				(11,274		)
Net unrealized appreciation (depreciation)	(29,138,074		)		4,881,533				(31,843,758		)		8,764,874
Net realized and unrealized gains (losses) on investments and foreign currency borrowings	(24,106,526		)		5,905,683				(15,058,035		)		15,101,554
Loss on extinguishment of debt	—				—				—				(412,673		)
Benefit (provision) for taxes	(122,439		)		486,413				(975,782		)		466,110
Net increase (decrease) in net assets resulting from operations	$	(8,812,327	)		$	23,171,664			$	27,884,510			$	63,439,947
Net investment income per share—basic and diluted	$	0.51			$	0.61			$	1.53			$	1.75
Net increase (decrease) in net assets resulting from operations per share—basic and diluted	$	(0.29	)		$	0.84			$	0.97			$	2.30
Dividends/distributions paid per share:
Regular quarterly dividends/distributions	$	0.54			$	0.54			$	1.62			$	1.62
Supplemental dividends/distributions	0.05				—				0.35				—
Total dividends/distributions	$	0.59			$	0.54			$	1.97			$	1.62
Weighted average number of shares outstanding—basic and diluted	30,412,036				27,619,464				28,718,753				27,541,442

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(Depreciation)				Total Net Assets
	Number of Shares			Par Value
Balance, December 31, 2012	27,284,798			$	27,285			$	403,322,097			$	6,783,161			$	1,972,940			$	5,229,761			$	417,335,244
Net investment income	—			—				—				48,284,956				—				—				48,284,956
Stock-based compensation	—			—				2,817,267				—				—				—				2,817,267
Realized gain (loss) on investments	—			—				—				—				6,336,680				(3,613,847		)		2,722,833
Net unrealized gains on investments / foreign currency	—			—				—				—				—				12,378,721				12,378,721
Loss on extinguishment of debt	—			—				—				(412,673		)		—				—				(412,673		)
Tax benefit	—			—				—				466,110				—				—				466,110
Dividends / distributions	84,058			84				2,362,204				(44,689,241		)		—				—				(42,326,953		)
Issuance of restricted stock	309,430			309				(309		)		—				—				—				—
Balance, September 30, 2013	27,678,286			$	27,678			$	408,501,259			$	10,432,313			$	8,309,620			$	13,994,635			$	441,265,505

 

	Common Stock							Additional Paid In Capital				Investment Income in Excess of Distributions				Accumulated Realized Gains on Investments				Net Unrealized Appreciation (Depreciation)				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	—			—				—				43,918,327				—				—				43,918,327
Stock-based compensation	—			—				4,334,437				—				—				—				4,334,437
Realized gain (loss) on investments	—			—				—				—				16,785,723				(15,977,182		)		808,541
Net unrealized loss on investments / foreign currency	—			—				—				—				—				(15,866,576		)		(15,866,576		)
Provision for taxes	—			—				—				(975,782		)		—				—				(975,782		)
Dividends / distributions	80,002			80				2,119,268				(38,269,538		)		(19,624,657		)		—				(55,774,847		)
Public offering of common stock	4,945,000			4,945				127,816,432				—				—				—				127,821,377
Issuance of restricted stock	282,630			282				(282		)		—				—				—				—
Common stock withheld for payroll taxes upon vesting of restricted stock	(98,768	)		(98		)		(2,607,933		)		—				—				—				(2,608,031		)
Balance, September 30, 2014	32,906,347			$	32,906			$	540,704,815			$	13,283,742			$	17,826,437			$	(24,398,324	)		$	547,449,576

See accompanying notes.

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows

 

	Nine Months Ended				Nine Months Ended
	September 30, 2014				September 30, 2013
Cash flows from operating activities:
Net increase in net assets resulting from operations	$	27,884,510			$	63,439,947
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
Purchases of portfolio investments	(345,617,501		)		(112,405,369		)
Repayments received/sales of portfolio investments	154,891,195				210,113,002
Loan origination and other fees received	5,669,609				1,221,431
Net realized gain on investments	(16,785,723		)		(6,336,680		)
Net unrealized depreciation (appreciation) on investments	32,073,570				(10,213,928		)
Net unrealized depreciation (appreciation) on foreign currency borrowings	(466,630		)		11,274
Deferred income taxes	236,818				1,437,780
Payment-in-kind interest accrued, net of payments received	(3,965,352		)		(1,459,624		)
Amortization of deferred financing fees	1,225,815				1,154,021
Loss on extinguishment of debt	—				412,673
Accretion of loan origination and other fees	(2,705,077		)		(3,447,435		)
Accretion of loan discounts	(809,647		)		(1,144,867		)
Accretion of discount on SBA-guaranteed debentures payable	137,257				134,310
Depreciation expense	33,412				30,417
Stock-based compensation	4,334,437				2,817,267
Changes in operating assets and liabilities:
Interest and fees receivable	764,525				(1,235,105		)
Prepaid expenses and other current assets	187,748				(382,869		)
Accounts payable and accrued liabilities	(3,693,239		)		723,138
Interest payable	(1,927,801		)		(2,063,979		)
Taxes payable	(636,511		)		(3,170,740		)
Net cash provided by (used in) operating activities	(149,168,585		)		139,634,664
Cash flows from investing activities:
Purchases of property and equipment	(70,644		)		(29,056		)
Net cash used in investing activities	(70,644		)		(29,056		)
Cash flows from financing activities:
Borrowings under SBA-guaranteed debentures payable	31,310,000				—
Repayments of SBA-guaranteed debentures payable	—				(20,500,000		)
Borrowings under credit facility	20,000,000				11,625,654
Repayments of credit facility	(20,000,000		)		—
Financing fees paid	(801,475		)		(684,294		)
Proceeds from public stock offerings, net of expenses	127,821,377				—
Common stock withheld for payroll taxes upon vesting of restricted stock	(2,608,031		)		—
Cash dividends/distributions paid	(55,774,847		)		(42,326,953		)
Net cash provided by (used in) financing activities	99,947,024				(51,885,593		)
Net increase (decrease) in cash and cash equivalents	(49,292,205		)		87,720,015
Cash and cash equivalents, beginning of period	133,304,346				72,300,423
Cash and cash equivalents, end of period	$	84,012,141			$	160,020,438
Supplemental disclosure of cash flow information:
Cash paid for interest	$	15,625,243			$	15,374,816
Summary of non-cash financing transactions:
Dividends/distributions paid through DRIP share issuances	$	2,119,348			$	2,362,288

See accompanying notes.

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 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)		$	12,843,054			$	12,642,741			$	12,642,741
				Common Units (1,250 units)						1,250,000				2,030,000
						12,843,054				13,892,741				14,672,741
AGM Automotive, LLC (5%)*		Auto Industry Interior Components Supplier		Subordinated Note (10% Cash, 3% PIK, Due 07/19)		25,388,779				24,924,531				24,924,531
				Class A Units (1,500 units)						1,500,000				2,722,000
						25,388,779				26,424,531				27,646,531
Applied-Cleveland Holdings, Inc. (5%)*		Oil and Gas Pipeline Infrastructure Inspection Services		Subordinated Note (10% Cash, 2% PIK, Due 06/19)		23,000,000				22,664,267				22,664,267
				Class A Units (2,129,032 units)						2,129,032				2,619,000
						23,000,000				24,793,299				25,283,267
Assurance Operations Corporation (0%)*		Metal Fabrication		Common Stock (517 shares)						516,867				1,211,000
										516,867				1,211,000
Audio and Video Labs Holdings, Inc. (3%)*		Manufacturer and Distributor for Independent Artists and Authors		Subordinated Note (12% Cash, 2% PIK, Due 06/18)		13,471,632				13,276,873				13,276,873
				Common Stock (138 shares)						1,300,000				1,702,000
						13,471,632				14,576,873				14,978,873
BFN Operations LLC (3%)*		Wholesale Grower and Distributor of Container Grown Shrubs, Trees and Plants		Subordinated Note (13% Cash, 4% PIK, Due 11/17)		18,089,153				17,791,902				17,791,902
						18,089,153				17,791,902				17,791,902
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. (2%)*		Restaurant		Subordinated Note (12% Cash, 2% PIK, Due 09/19)		12,128,579				11,904,533				11,904,533
				Series C Preferred Stock (10,000 shares)						1,000,000				1,000,000
						12,128,579				12,904,533				12,904,533
Capital Contractors, Inc. (1%)*		Janitorial and Facilities Maintenance Services		Subordinated Notes (12% Cash, 2% PIK, Due 12/15)		9,711,658				9,504,794				8,271,000
				Common Stock Warrants (20 shares)						492,000				—
						9,711,658				9,996,794				8,271,000
Carolina Beverage Group, LLC (0%)*		Beverage Manufacturing and Packaging		Class B Units (11,974 units)						119,735				510,000
										119,735				510,000
Chromaflo Technologies Parent LP (2%)*		Colorant Manufacturer and Distributor		Second Lien Term Loan (8.3% Cash, Due 06/20)		10,000,000				9,954,510				9,954,510
				Class A Units (22,561 units)						906,604				2,276,000
						10,000,000				10,861,114				12,230,510
Comverge, Inc. (3%)*		Provider of Intelligent Energy Management Solutions		Senior Note (12% Cash, Due 05/18)		15,505,583				15,287,784				15,287,784
				Preferred Stock (900 shares)						900,000				937,000
				Common Stock (1,000,000 shares)						100,000				—
						15,505,583				16,287,784				16,224,784
Continental Anesthesia Management, LLC (2%)*		Physicians Management Services		Subordinated Note (8% Cash, 6% PIK Due 04/15)		10,130,411				10,119,749				10,119,749
				Warrant (263 shares)						276,100				115,000
						10,130,411				10,395,849				10,234,749
CRS Reprocessing, LLC (3%)*		Fluid Reprocessing Services		Subordinated Note (12% Cash, 2% PIK, Due 11/15)(6)		12,441,321				12,066,015				9,723,000
				Subordinated Note (12% Cash, 2% PIK, Due 11/15)(6)		13,720,445				12,705,812				5,236,000
				Series C Preferred Units (30 units)						288,342				—
				Common Unit Warrant (664 units)						1,759,556				—
				Series D Preferred Units (16 units)						107,074				—
				Series E Preferred Units (5 units)						31,651				—
						26,161,766				26,958,450				14,959,000
CWS Acquisition Corp. (3%)*		Manufacturer of Custom Windows and Sliding Doors		Subordinated Note (11% Cash, 2% PIK, Due 01/20)		16,155,456				15,883,197				15,883,197
				1,500,000 Class A Units						1,500,000				1,500,000
						16,155,456				17,383,197				17,383,197

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 30, 2014
Portfolio Company		Industry		Type of Investment(1)(2)		Principal Amount				Cost				Fair Value(3)
Danville Materials, LLC (2%)*		Manufacturer of Dental Products		Subordinated Note (10% Cash, Due 12/18)		$	8,000,000			$	7,860,551			$	7,860,551
				Common Units (45,492 units)						500,000				558,000
						8,000,000				8,360,551				8,418,551
DataSource Incorporated (1%)*		Print Supply Chain Management Services		Subordinated Note (12% Cash, 2% PIK, Due 01/18)		4,840,296				4,726,852				4,726,852
				Common Units (47 units)						1,000,000				760,000
						4,840,296				5,726,852				5,486,852
DCWV Acquisition Corporation (1%)*		Arts & Crafts and Home Decor Products Designer and Supplier		Subordinated Note (12% Cash, 5% PIK, Due 09/17) (5)		6,449,894				6,161,147				3,101,000
						6,449,894				6,161,147				3,101,000
DialogDirect, Inc. (4%)*		Business Process Outsourcing Provider		Subordinated Note (12% Cash, 2.5% PIK, Due 06/18)		23,964,075				23,638,406				23,638,406
						23,964,075				23,638,406				23,638,406
DLC Acquisition, LLC (4%)*		Staffing Firm		Senior Note (10% Cash, Due 07/19)		21,750,000				21,296,593				21,296,593
						21,750,000				21,296,593				21,296,593
DLR Restaurants, LLC (0%)*		Restaurant		Royalty Rights						—				15,000
										—				15,000
Dyno Acquiror, Inc. (1%)*		Sewing Products and Seasonal Decorative Products Supplier		Subordinated Note (12% Cash, 2% PIK, Due 11/18)		7,200,203				7,086,123				7,086,123
				Preferred series A Units (600,000 units)						600,000				302,000
						7,200,203				7,686,123				7,388,123
Eckler's Holdings, Inc. (2%)*		Restoration Parts and Accessories for Classic Cars and Trucks		Subordinated Note (11% Cash, 4% PIK, Due 07/18)		7,302,345				7,182,296				7,182,296
				Common Stock (18,029 shares)						183,562				—
				Preferred Stock A (1,596 shares)						1,596,126				1,335,000
						7,302,345				8,961,984				8,517,296
Electronic Systems Protection, Inc. (0%)*		Power Protection Systems Manufacturing		Common Stock (570 shares)						285,000				447,000
										285,000				447,000
Flowchem Ltd. (2%)*		Provider of Support Services to Crude Oil Pipeline Operators		Subordinated Note (11% Cash, 2% PIK, Due 06/19)		7,877,718				7,738,817				7,738,817
				Common Units (1,000,000 units)						1,000,000				902,000
						7,877,718				8,738,817				8,640,817
FrontStream Payments, Inc. (2%)*		Payment and Donation Management Product Service Provider		Senior Note (8% Cash, 6% PIK, Due 08/18)		11,511,916				11,329,004				11,329,004
						11,511,916				11,329,004				11,329,004
Frontstreet Facility Solutions, Inc. (1%)*		Retail, Restaurant and Commercial Facilities Maintenance		Subordinated Note (10% Cash, 3% PIK, Due 07/18)		8,527,509				8,427,334				4,780,000
				Convertible Preferred Units (2,500 units)						250,000				—
						8,527,509				8,677,334				4,780,000
Frozen Specialties, Inc. (2%)*		Frozen Foods Manufacturer		Subordinated Note (10% Cash, 4% PIK, Due 05/17)		11,792,518				11,792,518				9,705,000
						11,792,518				11,792,518				9,705,000
Garden Fresh Restaurant Holding, LLC (0%)*		Restaurant		Class A Units (5,000 units)						500,000				74,000
										500,000				74,000
Grindmaster-Cecilware Corp. (1%)*		Food Services Equipment Manufacturer		Subordinated Note (12% Cash, 6% PIK, Due 04/16)		7,414,076				7,400,564				7,400,564
						7,414,076				7,400,564				7,400,564
GST AutoLeather, Inc. (4%)*		Supplier of Automotive Interior Leather		Subordinated Note (11% Cash, 2% PIK, Due 01/21)		22,100,222				21,670,860				21,670,860
						22,100,222				21,670,860				21,670,860
Hatch Chile Co., LLC (1%)*		Food Products Distributor		Subordinated Note (19% Cash, Due 11/18)		2,992,500				2,968,322				2,968,322
				Subordinated Note (14% Cash, Due 11/18)		3,277,500				3,067,445				3,067,445
				Unit Purchase Warrant (7,817 units)						295,800				643,000
						6,270,000				6,331,567				6,678,767

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 30, 2014
Portfolio Company		Industry		Type of Investment(1)(2)		Principal Amount				Cost				Fair Value(3)
Hickman's Egg Ranch, Inc. (3%)*		Egg Producer		Subordinated Note (12% Cash, 1% PIK, Due 06/19)		$	15,042,961			$	14,754,126			$	14,754,126
						15,042,961				14,754,126				14,754,126
HKW Capital Partners IV, L.P. (0%)*(4)		Multi-Sector Holdings		Limited Partnership Interest						714,895				754,000
										714,895				754,000
Huron, Inc. (2%)*		Manufacturer for Automotive Industry		Subordinated Note (10% Cash, 3% PIK, Due 08/18)		13,750,964				13,685,848				13,685,848
						13,750,964				13,685,848				13,685,848
Infrastructure Corporation of America, Inc. (2%)*		Roadway Maintenance, Repair and Engineering Services		Subordinated Note (12% Cash, 2% PIK, Due 09/18)		11,363,391				10,061,986				10,061,986
				Common Stock Purchase Warrant (487,877 shares)						2,411,000				2,238,000
						11,363,391				12,472,986				12,299,986
Inland Pipe Rehabilitation Holding Company LLC (2%)*		Cleaning and Repair Services		Subordinated Note (13% Cash, 2.5% PIK, Due 12/16)		8,550,095				8,401,566				8,401,566
				Membership Interest Purchase Warrant (3.0%)						853,500				1,003,000
						8,550,095				9,255,066				9,404,566
IOS Acquisitions, Inc. (4%)*		Provider of Oil Country Tubular Goods Inspections and Repair Services		Subordinated Note (12% Cash, 3.5% PIK, Due 06/18)		20,038,626				19,749,051				19,749,051
				Common Units (7,314 Class A Units)						1,699,847				1,830,000
						20,038,626				21,448,898				21,579,051
Justrite Manufacturing Company, LLC (3%)*		Storage Product Developer and Supplier for Hazardous Materials		Subordinated Note (10% Cash, 2% PIK, Due 07/19)		14,702,313				14,507,990				14,507,990
				Class A Common Units (1,268 units)						118,110				118,110
				Class A Preferred Units (132 units)						131,890				168,000
						14,702,313				14,757,990				14,794,100
Library Systems & Services, LLC (0%)*		Municipal Business Services		Common Unit Warrants (112 units)						58,995				2,673,000
										58,995				2,673,000
Magpul Industries Corp. (1%)*		Firearm Accessories Manufacturer and Distributor		Preferred Units (1,470 units)						1,470,000				2,220,000
				Common Units (30,000 units)						30,000				4,296,000
										1,500,000				6,516,000
Media Storm, LLC (2%)*		Marketing Services		Subordinated Note (10% Cash, Due 08/19)		8,000,000				7,924,431				7,924,431
				Membership Units (1,216,204 units)						1,176,957				1,923,000
						8,000,000				9,101,388				9,847,431
Micross Solutions LLC (2%)*		Provider of Semiconductor Products and Services		Subordinated Note (12% Cash, 2% PIK, Due 06/18)		10,997,983				10,878,880				10,878,880
				Class A-2 Common Units (1,580,559 units)						1,580,599				1,431,000
						10,997,983				12,459,479				12,309,880
Minco Technology Labs, LLC (1%)*		Semiconductor Distribution		Subordinated Note (6.5% Cash, 3.5% PIK, Due 12/16) (6)		6,184,671				5,484,627				3,000,000
				Class A Units (5,000 HoldCo. units)						500,000				—
				Class A Units (3,907 OpCo. units)						3,907				—
						6,184,671				5,988,534				3,000,000
My Alarm Center, LLC (0%)*		Security Company		Preferred Units (2,000,000 units)						2,000,000				1,918,000
										2,000,000				1,918,000
On Event Services, LLC (2%)*		Equipment Rentals to Conference Venues and Live Events		Subordinated Note (10% Cash, 2% PIK, Due 01/19)		9,895,720				9,724,199				9,724,199
						9,895,720				9,724,199				9,724,199
PCX Aerostructures, LLC (4%)*		Aerospace Component Manufacturer		Subordinated Note (11% Cash, 3% PIK, Due 04/19)		19,277,164				18,924,761				18,924,761
				Series A Preferred Stock (3,980 shares)						3,980,000				3,980,000
				Class A Common Stock (80,000 shares)						20,000				20,000
						19,277,164				22,924,761				22,924,761
Performance Health & Wellness Holdings, Inc. (2%)*		Designer and Manufacturer of Rehabilitation and Wellness Products		Subordinated Note (12% Cash, 1% PIK, Due 04/19)		6,718,681				6,568,660				6,631,000
				Class A Limited Partnership Units (15,000 units)						1,500,000				2,253,000
						6,718,681				8,068,660				8,884,000

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 30, 2014
Portfolio Company		Industry		Type of Investment(1)(2)		Principal Amount				Cost				Fair Value(3)
PetroLiance, LLC (3%)*		Lubricant, Fuel and Ancillary Products Distributor		Subordinated Note (12% Cash, 0.5% PIK, Due 08/19)		$	12,045,575			$	11,829,867			$	11,829,867
				Class A Units (1,142,857 Units)						1,200,000				2,117,000
						12,045,575				13,029,867				13,946,867
PowerDirect Marketing, LLC (1%)*		Marketing Services		Subordinated Note (13% Cash, 2% PIK, Due 12/16)(6)		7,254,113				6,613,149				3,456,000
				Common Unit Purchase Warrants						590,200				—
						7,254,113				7,203,349				3,456,000
Sheplers, Inc. (2%)*		Western Apparel Retailer		Subordinated Note (13.2% Cash, Due 12/16)		8,750,000				8,634,079				8,634,079
				Subordinated Note (10% Cash, 7% PIK, Due 12/17)		4,545,735				4,507,387				4,507,387
						13,295,735				13,141,466				13,141,466
SPC Partners V, LP (0%)*(4)		Multi-Sector Holdings		0.7% Limited Partnership Interest						742,036				742,036
										742,036				742,036
Specialized Desanders, Inc. (4%)* (4)		Sand and Particulate Removal Equipment Provider for Oil and Gas Companies		Subordinated Note (12% Cash, 2% PIK, Due 03/20)		16,110,043				15,864,548				14,990,211
				LLP Units (2,000,000 units)						1,937,421				6,413,000
						16,110,043				17,801,969				21,403,211
Stella Environmental Services, LLC (0%)*		Waste Transfer Stations		Common Stock Purchase Warrants (2,500 shares)						20,000				949,000
										20,000				949,000
TACH Holdings, Inc. (f/k/a Trinity Consultants Holdings, Inc.) (3%)*		Air Quality Consulting Services		Subordinated Note (10% Cash, 3% PIK, Due 08/20)		15,058,750				14,931,328				14,931,328
				Series A1 Preferred Stock (10,000 units)						—				101,000
				Common Stock (50,000 units)						50,000				911,000
						15,058,750				14,981,328				15,943,328
Tate's Bake Shop (2%)*		Producer of Gourmet Cookies and Other Baked Goods		Subordinated Note (10% Cash, 3% PIK, Due 02/20)		10,028,333				9,828,333				9,828,333
				Limited Partnership Investment						999,000				999,000
						10,028,333				10,827,333				10,827,333
TCFI Merlin LLC (3%)*		Specialty Staffing Service Provider		Senior Note (10% Cash, 1% PIK, Due 09./19)		15,003,750				14,703,750				14,703,750
				Limited Partnership Units (500,000 units)						500,000				500,000
						15,003,750				15,203,750				15,203,750
The Cook & Boardman Group, LLC (3%)*		Specialty Distributor of Doors and Related Products		Subordinated Note (10% Cash, 2.5% PIK, Due 03/20)		14,018,472				13,738,472				13,738,472
				Class A Units (1,400,000 units)						1,400,000				1,400,000
						14,018,472				15,138,472				15,138,472
The Krystal Company (1%)*		Restaurant		Class A Units of Limited Partnership (2,000 units)						638,260				3,119,000
										638,260				3,119,000
Tomich Brothers, LLC (0%)*		Squid and Wetfish Processor and Distributor		Subordinated Note (9.5% Cash, 5.5% PIK, Due 04/16) (6)		13,206,424				12,807,836				2,713,000
						13,206,424				12,807,836				2,713,000
Top Knobs USA, Inc. (0%)*		Hardware Designer and Distributor		Common Stock (26,593 shares)						402,828				1,647,000
										402,828				1,647,000
United Biologics, LLC (2%)*		Allergy Immunotherapy		Subordinated Note (12% Cash, 2% PIK, Due 03/17)		12,805,264				12,167,196				12,167,196
				Class A Common Stock (177,935 shares)						1,999,989				820,000
				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				195,000
						12,805,264				15,142,626				13,319,196
United Retirement Plan Consultants, Inc. (0%)*		Retirement Plan Administrator		Preferred A Units (90,000 units)						900,000				1,050,000
				Common Units (10,000 units)						100,000