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. | ||
Item 3. | ||
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
June 30, 2015 | December 31, 2014 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Investments at fair value: | |||||||
Non-Control / Non-Affiliate investments (cost of $677,505,732 and $717,233,688 at June 30, 2015 and December 31, 2014, respectively) | $ | 662,866,063 | $ | 693,312,886 | |||
Affiliate investments (cost of $193,995,315 and $175,182,171 at June 30, 2015 and December 31, 2014, respectively) | 197,281,194 | 178,935,236 | |||||
Control investments (cost of $46,406,803 and $29,636,763 at June 30, 2015 and December 31, 2014, respectively) | 24,751,233 | 14,975,000 | |||||
Total investments at fair value | 884,898,490 | 887,223,122 | |||||
Cash and cash equivalents | 117,547,039 | 78,759,026 | |||||
Interest and fees receivable | 6,834,561 | 7,409,105 | |||||
Prepaid expenses and other current assets | 646,272 | 438,861 | |||||
Deferred financing fees | 3,682,831 | 1,230,577 | |||||
Property and equipment, net | 116,619 | 108,753 | |||||
Total assets | $ | 1,013,725,812 | $ | 975,169,444 | |||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 3,417,774 | $ | 7,144,673 | |||
Interest payable | 3,577,430 | 3,365,237 | |||||
Taxes payable | 54,152 | 2,506,031 | |||||
Deferred income taxes | 4,117,502 | 3,363,669 | |||||
Payable from unsettled transaction | 16,961,500 | — | |||||
Borrowings under credit facility | 88,758,498 | 62,619,883 | |||||
Notes | 161,850,261 | 145,646,224 | |||||
SBA-guaranteed debentures payable | 220,171,914 | 219,697,098 | |||||
Total liabilities | 498,909,031 | 444,342,815 | |||||
Commitments and contingencies (Note 7) | |||||||
Net Assets: | |||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 33,272,167 and 32,950,288 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively) | 33,272 | 32,950 | |||||
Additional paid in capital | 544,771,957 | 542,119,994 | |||||
Investment income in excess of distributions | 6,138,723 | 12,926,514 | |||||
Accumulated realized gains (losses) | (1,337,335 | ) | 12,464,699 | ||||
Net unrealized appreciation (depreciation) | (34,789,836 | ) | (36,717,528 | ) | |||
Total net assets | 514,816,781 | 530,826,629 | |||||
Total liabilities and net assets | $ | 1,013,725,812 | $ | 975,169,444 | |||
Net asset value per share | $ | 15.47 | $ | 16.11 |
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||||||
June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | ||||||||||||
Investment income: | |||||||||||||||
Interest income: | |||||||||||||||
Non-Control / Non-Affiliate investments | $ | 16,982,885 | $ | 15,241,853 | $ | 33,941,585 | $ | 29,710,399 | |||||||
Affiliate investments | 4,199,380 | 2,208,077 | 8,390,729 | 4,564,512 | |||||||||||
Control investments | 49,481 | 43,835 | 49,481 | 87,343 | |||||||||||
Total interest income | 21,231,746 | 17,493,765 | 42,381,795 | 34,362,254 | |||||||||||
Dividend income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 45,689 | 787,689 | 1,634,394 | 1,051,616 | |||||||||||
Affiliate investments | 281,369 | 207,899 | 537,622 | 1,148,070 | |||||||||||
Total dividend income | 327,058 | 995,588 | 2,172,016 | 2,199,686 | |||||||||||
Fee and other income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 835,092 | 1,263,026 | 4,072,438 | 3,038,318 | |||||||||||
Affiliate investments | 1,500,096 | 383,616 | 1,997,053 | 663,801 | |||||||||||
Control investments | 100,000 | 600,000 | 200,000 | 701,852 | |||||||||||
Total fee and other income | 2,435,188 | 2,246,642 | 6,269,491 | 4,403,971 | |||||||||||
Payment-in-kind interest income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 2,613,528 | 3,404,283 | 5,341,851 | 6,402,060 | |||||||||||
Affiliate investments | 1,150,008 | 736,516 | 2,319,009 | 1,467,173 | |||||||||||
Control investments | — | 6,084 | — | 12,071 | |||||||||||
Total payment-in-kind interest income | 3,763,536 | 4,146,883 | 7,660,860 | 7,881,304 | |||||||||||
Interest income from cash and cash equivalents | 67,376 | 56,888 | 120,312 | 131,496 | |||||||||||
Total investment income | 27,824,904 | 24,939,766 | 58,604,474 | 48,978,711 | |||||||||||
Operating expenses: | |||||||||||||||
Interest and other financing fees | 7,325,340 | 5,158,543 | 13,757,795 | 10,298,055 | |||||||||||
General and administrative expenses | 4,333,379 | 5,122,875 | 10,910,915 | 10,178,967 | |||||||||||
Total operating expenses | 11,658,719 | 10,281,418 | 24,668,710 | 20,477,022 | |||||||||||
Net investment income | 16,166,185 | 14,658,348 | 33,935,764 | 28,501,689 | |||||||||||
Realized and unrealized gains (losses) on investments and foreign currency borrowings: | |||||||||||||||
Net realized gains (losses): | |||||||||||||||
Non-Control / Non-Affiliate investments | 3,178,433 | 11,462,275 | 6,415,102 | 11,734,476 | |||||||||||
Affiliate investments | 238,806 | 228,252 | 266,508 | 228,252 | |||||||||||
Control investments | (20,483,644 | ) | — | (20,483,644 | ) | (208,553 | ) | ||||||||
Net realized gains (losses) | (17,066,405 | ) | 11,690,527 | (13,802,034 | ) | 11,754,175 | |||||||||
Net unrealized appreciation (depreciation): | |||||||||||||||
Investments | 14,782,147 | (1,172,480 | ) | 1,066,307 | (2,670,950 | ) | |||||||||
Foreign currency borrowings | (312,322 | ) | (395,269 | ) | 861,385 | (34,734 | ) | ||||||||
Net unrealized appreciation (depreciation) | 14,469,825 | (1,567,749 | ) | 1,927,692 | (2,705,684 | ) | |||||||||
Net realized and unrealized gains (losses) on investments and foreign currency borrowings | (2,596,580 | ) | 10,122,778 | (11,874,342 | ) | 9,048,491 | |||||||||
Loss on extinguishment of debt | (1,394,017 | ) | — | (1,394,017 | ) | — | |||||||||
Provision for taxes | — | (586,788 | ) | (137,875 | ) | (853,343 | ) | ||||||||
Net increase in net assets resulting from operations | $ | 12,175,588 | $ | 24,194,338 | $ | 20,529,530 | $ | 36,696,837 | |||||||
Net investment income per share—basic and diluted | $ | 0.49 | $ | 0.53 | $ | 1.02 | $ | 1.02 | |||||||
Net increase in net assets resulting from operations per share—basic and diluted | $ | 0.37 | $ | 0.87 | $ | 0.62 | $ | 1.32 | |||||||
Dividends/distributions per share: | |||||||||||||||
Regular quarterly dividends/distributions | $ | 0.54 | $ | 0.54 | $ | 1.08 | $ | 1.08 | |||||||
Supplemental dividends/distributions | 0.05 | 0.15 | 0.10 | 0.30 | |||||||||||
Total dividends/distributions per share | $ | 0.59 | $ | 0.69 | $ | 1.18 | $ | 1.38 | |||||||
Weighted average shares outstanding—basic and diluted | 33,234,532 | 27,910,468 | 33,166,865 | 27,857,788 |
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 | — | — | — | 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 gains (losses) 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 |
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, 2014 | 32,950,288 | $ | 32,950 | $ | 542,119,994 | $ | 12,926,514 | $ | 12,464,699 | $ | (36,717,528 | ) | $ | 530,826,629 | ||||||||||||
Net investment income | — | — | — | 33,935,764 | — | — | 33,935,764 | |||||||||||||||||||
Stock-based compensation | — | — | 3,412,181 | — | — | — | 3,412,181 | |||||||||||||||||||
Realized gain (loss) on investments | — | — | — | — | (13,802,034 | ) | 14,380,376 | 578,342 | ||||||||||||||||||
Net unrealized loss on investments / foreign currency | — | — | — | — | — | (12,452,684 | ) | (12,452,684 | ) | |||||||||||||||||
Loss on extinguishment of debt | — | — | — | (1,394,017 | ) | — | — | (1,394,017 | ) | |||||||||||||||||
Provision for taxes | — | — | — | (137,875 | ) | — | — | (137,875 | ) | |||||||||||||||||
Dividends / distributions | 71,248 | 71 | 1,695,352 | (39,191,663 | ) | — | (37,496,240 | ) | ||||||||||||||||||
Expenses related to public offering of common stock | — | — | (54,967 | ) | — | — | — | (54,967 | ) | |||||||||||||||||
Issuance of restricted stock | 360,840 | 361 | (361 | ) | — | — | — | — | ||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (110,209 | ) | (110 | ) | (2,400,242 | ) | — | — | — | (2,400,352 | ) | |||||||||||||||
Balance, June 30, 2015 | 33,272,167 | $ | 33,272 | $ | 544,771,957 | $ | 6,138,723 | $ | (1,337,335 | ) | $ | (34,789,836 | ) | $ | 514,816,781 |
Six Months Ended | Six Months Ended | ||||||
June 30, 2015 | June 30, 2014 | ||||||
Cash flows from operating activities: | |||||||
Net increase in net assets resulting from operations | $ | 20,529,530 | $ | 36,696,837 | |||
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities: | |||||||
Purchases of portfolio investments | (163,270,565 | ) | (164,840,342 | ) | |||
Repayments received/sales of portfolio investments | 154,211,535 | 105,026,498 | |||||
Loan origination and other fees received | 2,819,164 | 2,838,426 | |||||
Net realized loss (gain) on investments | 13,802,034 | (11,754,175 | ) | ||||
Net unrealized depreciation (appreciation) on investments | (1,820,140 | ) | 1,867,995 | ||||
Net unrealized depreciation (appreciation) on foreign currency borrowings | (861,385 | ) | 34,734 | ||||
Deferred income taxes | 753,833 | 802,955 | |||||
Payment-in-kind interest accrued, net of payments received | 23,501 | (2,614,188 | ) | ||||
Amortization of deferred financing fees | 1,107,207 | 800,583 | |||||
Loss on extinguishment of debt | 1,394,017 | — | |||||
Accretion of loan origination and other fees | (3,202,668 | ) | (1,783,603 | ) | |||
Accretion of loan discounts | (238,229 | ) | (644,575 | ) | |||
Accretion of discount on SBA-guaranteed debentures payable | 92,784 | 90,792 | |||||
Depreciation expense | 29,225 | 20,114 | |||||
Stock-based compensation | 3,412,181 | 2,828,410 | |||||
Changes in operating assets and liabilities: | |||||||
Interest and fees receivable | 574,544 | 1,186,064 | |||||
Prepaid expenses and other current assets | (207,411 | ) | 238,828 | ||||
Accounts payable and accrued liabilities | (3,726,899 | ) | (4,277,738 | ) | |||
Interest payable | 212,193 | 4,770 | |||||
Taxes payable | (2,451,879 | ) | (655,858 | ) | |||
Payable from unsettled transaction | 16,961,500 | — | |||||
Net cash provided by (used in) operating activities | 40,144,072 | (34,133,473 | ) | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (37,091 | ) | (34,827 | ) | |||
Net cash used in investing activities | (37,091 | ) | (34,827 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings under credit facility | 83,000,000 | 20,000,000 | |||||
Repayments of credit facility | (56,000,000 | ) | — | ||||
Proceeds from notes | 83,372,640 | — | |||||
Redemption of notes | (69,000,000 | ) | — | ||||
Financing fees paid | (2,740,049 | ) | — | ||||
Expenses related to public offering of common stock | (54,967 | ) | — | ||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (2,400,352 | ) | (2,474,121 | ) | |||
Cash dividends/distributions paid | (37,496,240 | ) | (37,068,840 | ) | |||
Net cash used in financing activities | (1,318,968 | ) | (19,542,961 | ) | |||
Net increase (decrease) in cash and cash equivalents | 38,788,013 | (53,711,261 | ) | ||||
Cash and cash equivalents, beginning of period | 78,759,026 | 133,304,346 | |||||
Cash and cash equivalents, end of period | $ | 117,547,039 | $ | 79,593,085 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 11,673,774 | $ | 9,008,748 | |||
Summary of non-cash financing transactions: | |||||||
Dividends/distributions paid through DRIP share issuances | $ | 1,695,423 | $ | 1,426,201 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 2015 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | 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) | $ | 12,989,699 | $ | 12,814,036 | $ | 12,814,036 | ||||||||
Common Units (1,250 units) | 1,250,000 | 2,088,000 | ||||||||||||||
12,989,699 | 14,064,036 | 14,902,036 | ||||||||||||||
AGM Automotive, LLC (0%)* | Auto Industry Interior Components Suppler | Class A Units (1,500,000 units) | 630,134 | 1,216,000 | ||||||||||||
630,134 | 1,216,000 | |||||||||||||||
All Metro Health Care Services, Inc. (3%)*(8) | Home Care Service Provider | Subordinated Note (10% Cash, 2% PIK, Due 03/20) | 17,350,000 | 16,966,500 | 16,966,500 | |||||||||||
17,350,000 | 16,966,500 | 16,966,500 | ||||||||||||||
Applied-Cleveland Holdings, Inc. (5%)* | Oil and Gas Pipeline Infrastructure Inspection Services | Subordinated Note (10% Cash, 2% PIK, Due 06/19) | 23,232,249 | 22,943,862 | 22,943,862 | |||||||||||
Class A Units (2,129,032 units) | 2,129,032 | 1,774,000 | ||||||||||||||
23,232,249 | 25,072,894 | 24,717,862 | ||||||||||||||
Audio and Video Labs Holdings, Inc. (2%)* | Manufacturer and Distributor for Independent Artists and Authors | Subordinated Note (12% Cash, 2% PIK, Due 06/18) | 10,401,251 | 10,272,412 | 10,272,412 | |||||||||||
Common Stock (138 shares) | 1,300,000 | 1,590,000 | ||||||||||||||
10,401,251 | 11,572,412 | 11,862,412 | ||||||||||||||
BFN Operations LLC (2%)* | Wholesale Grower and Distributor of Container Grown Shrubs, Trees and Plants | Subordinated Note (13% Cash, 4% PIK, Due 11/20) | 16,636,639 | 16,274,785 | 10,517,000 | |||||||||||
16,636,639 | 16,274,785 | 10,517,000 | ||||||||||||||
Botanical Laboratories, Inc. (0%)* | Nutritional Supplement Manufacturing and Distribution | Common Stock Warrants (998,680 shares) | 237,301 | 384,000 | ||||||||||||
237,301 | 384,000 | |||||||||||||||
Cafe Enterprises, Inc. (3%)* | Restaurant | Subordinated Note (12% Cash, 2% PIK, Due 09/19) | 12,313,772 | 12,115,498 | 12,115,498 | |||||||||||
Series C Preferred Stock (10,000 shares) | 1,000,000 | 1,000,000 | ||||||||||||||
12,313,772 | 13,115,498 | 13,115,498 | ||||||||||||||
Capital Contractors, Inc. (1%)* | Janitorial and Facilities Maintenance Services | Subordinated Notes (5% Cash, Due 12/16) | 9,843,542 | 9,585,227 | 7,441,000 | |||||||||||
Series A Redeemable Preferred Stock (200 shares) | 2,000,000 | — | ||||||||||||||
Common Stock Warrants (20 shares) | 492,000 | — | ||||||||||||||
9,843,542 | 12,077,227 | 7,441,000 | ||||||||||||||
Carolina Beverage Group, LLC (0%)* | Beverage Manufacturing and Packaging | Class B Units (11,974 units) | 119,735 | 529,000 | ||||||||||||
119,735 | 529,000 | |||||||||||||||
Chromaflo Technologies Parent LP (2%)* | Colorant Manufacturer and Distributor | Second Lien Term Loan (8.3% Cash, Due 06/20) | 9,999,618 | 9,958,923 | 9,958,923 | |||||||||||
Class A Units (22,561 units) | 906,604 | 2,264,000 | ||||||||||||||
9,999,618 | 10,865,527 | 12,222,923 | ||||||||||||||
Comverge, Inc. (3%)* | Provider of Intelligent Energy Management Solutions | Senior Note (12% Cash, Due 05/18) | 15,505,583 | 15,323,979 | 15,323,979 | |||||||||||
Preferred Stock (703 shares) | 554,458 | 493,000 | ||||||||||||||
Common Stock (1,000,000 shares) | 100,000 | — | ||||||||||||||
15,505,583 | 15,978,437 | 15,816,979 | ||||||||||||||
Continental Anesthesia Management, LLC (2%)* | Physicians Management Services | Subordinated Note (10% Cash, 4% PIK Due 04/16) | 10,463,794 | 10,459,316 | 10,459,316 | |||||||||||
Warrant (263 shares) | 276,100 | 39,000 | ||||||||||||||
10,463,794 | 10,735,416 | 10,498,316 | ||||||||||||||
CPower Ultimate HoldCo, LLC (0%)* | Demand Response Business | Units (345,542 units) | 345,542 | 345,542 | ||||||||||||
345,542 | 345,542 | |||||||||||||||
CWS Acquisition Corp. (3%)* | Manufacturer of Custom Windows and Sliding Doors | Subordinated Note (11% Cash, 2% PIK, Due 01/20) | 16,401,721 | 16,159,530 | 16,401,721 | |||||||||||
1,500,000 Class A Units | 1,500,000 | 1,500,000 | ||||||||||||||
16,401,721 | 17,659,530 | 17,901,721 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 2015 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Danville Materials, LLC (2%)* | Manufacturer of Dental Products | Subordinated Note (10% Cash, Due 12/18) | $ | 8,000,000 | $ | 7,882,681 | $ | 7,882,681 | ||||||||
Common Units (45,492 units) | 500,000 | 845,000 | ||||||||||||||
8,000,000 | 8,382,681 | 8,727,681 | ||||||||||||||
Data Source Holdings, LLC (0%)* | Print Supply Chain Management Services | Common Units (47,503 units) | 1,000,000 | 929,000 | ||||||||||||
1,000,000 | 929,000 | |||||||||||||||
DCWV Acquisition Corporation (1%)* | Arts & Crafts and Home Decor Products Designer and Supplier | Subordinated Note (12% Cash, 3% PIK, Due 09/17) (5) | 6,617,147 | 6,178,633 | 3,958,000 | |||||||||||
Series A Preferred Equity (1,200 shares) | 1,200,000 | — | ||||||||||||||
6,617,147 | 7,378,633 | 3,958,000 | ||||||||||||||
DialogDirect, Inc. (5%)* | Business Process Outsourcing Provider | Subordinated Note (12% Cash, 1.5% PIK, Due 04/20) | 24,249,162 | 24,033,554 | 24,033,554 | |||||||||||
24,249,162 | 24,033,554 | 24,033,554 | ||||||||||||||
DLC Acquisition, LLC (5%)* | Staffing Firm | Senior Notes (10% Cash, Due 07/19) | 23,850,000 | 23,454,829 | 23,454,829 | |||||||||||
23,850,000 | 23,454,829 | 23,454,829 | ||||||||||||||
DLR Restaurants, LLC (0%)* | Restaurant | Royalty Rights | — | — | ||||||||||||
— | — | |||||||||||||||
Dyno Acquiror, Inc. (1%)* | Sewing Products and Seasonal Decorative Products Supplier | Subordinated Note (12% Cash, 2% PIK, Due 11/18) | 7,308,929 | 7,212,340 | 7,212,340 | |||||||||||
Series A Units (600,000 units) | 600,000 | 371,000 | ||||||||||||||
7,308,929 | 7,812,340 | 7,583,340 | ||||||||||||||
Eckler's Holdings, Inc. (1%)* | Restoration Parts and Accessories for Classic Cars and Trucks | Subordinated Note (11% Cash, 4% PIK, Due 07/18) (6) | 8,013,380 | 7,262,454 | 6,835,000 | |||||||||||
Common Stock (18,029 shares) | 183,562 | — | ||||||||||||||
Preferred Stock A (1,596 shares) | 1,596,126 | — | ||||||||||||||
8,013,380 | 9,042,142 | 6,835,000 | ||||||||||||||
Electronic Systems Protection, Inc. (0%)* | Power Protection Systems Manufacturing | Common Stock (570 shares) | 285,000 | 524,000 | ||||||||||||
285,000 | 524,000 | |||||||||||||||
FCL Graphics, Inc. (0%)* | Commercial Printing Services | Senior Note (4.7% Cash, Due 09/16) | 1,067,561 | 1,067,561 | 933,000 | |||||||||||
Senior Note (7.8% Cash, 2% PIK, Due 09/16) (5) | 1,232,154 | 1,207,439 | — | |||||||||||||
2,299,715 | 2,275,000 | 933,000 | ||||||||||||||
Flowchem Ltd. (2%)* | Provider of Support Services to Crude Oil Pipeline Operators | Subordinated Note (11% Cash, 2% PIK, Due 06/19) | 7,956,475 | 7,835,038 | 7,835,038 | |||||||||||
Common Units (1,000,000 units) | 914,835 | 1,719,000 | ||||||||||||||
7,956,475 | 8,749,873 | 9,554,038 | ||||||||||||||
FrontStream Payments, Inc. (2%)* | Payment and Donation Management Product Service Provider | Subordinated Note (12.5% Cash Due 12/20) | 12,500,000 | 12,365,232 | 12,365,232 | |||||||||||
12,500,000 | 12,365,232 | 12,365,232 | ||||||||||||||
Frontstreet Facility Solutions, Inc. (1%)* | Retail, Restaurant and Commercial Facilities Maintenance | Subordinated Note (13% Cash, Due 07/18) | 8,462,629 | 8,379,798 | 5,841,000 | |||||||||||
Series A Convertible Preferred Stock (2,500 shares) | 250,000 | — | ||||||||||||||
Series B Convertible Preferred Stock (5,556 shares) | 500,000 | — | ||||||||||||||
8,462,629 | 9,129,798 | 5,841,000 | ||||||||||||||
Frozen Specialties, Inc. (2%)* | Frozen Foods Manufacturer | Subordinated Note (10% Cash, 4% PIK, Due 05/17) | 12,868,637 | 12,868,637 | 10,764,000 | |||||||||||
12,868,637 | 12,868,637 | 10,764,000 | ||||||||||||||
Garden Fresh Restaurant Holding, LLC (0%)* | Restaurant | Class A Units (5,000 units) | 500,000 | 41,000 | ||||||||||||
500,000 | 41,000 | |||||||||||||||
Gilchrist & Soames, Inc. (7%)* | Manufacturer of Personal Care Products | Split Collateral Term Loan (10% Cash, 1.5% PIK, Due 11/19) | 35,153,443 | 34,670,061 | 34,670,061 | |||||||||||
35,153,443 | 34,670,061 | 34,670,061 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 2015 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | Principal Amount | Cost | Fair Value(3) | |||||||||||
GST AutoLeather, Inc. (4%)* | Supplier of Automotive Interior Leather | Subordinated Note (11% Cash, 2% PIK, Due 01/21) | $ | 22,437,106 | $ | 22,041,446 | $ | 22,041,446 | ||||||||
22,437,106 | 22,041,446 | 22,041,446 | ||||||||||||||
Hatch Chile Co., LLC (1%)* | Food Products Distributor | Subordinated Note (19% Cash, Due 11/18) | 2,874,375 | 2,874,375 | 2,874,375 | |||||||||||
Subordinated Note (14% Cash, Due 11/18) | 3,148,125 | 2,998,539 | 2,998,539 | |||||||||||||
Unit Purchase Warrant (7,817 units) | 295,800 | 618,000 | ||||||||||||||
6,022,500 | 6,168,714 | 6,490,914 | ||||||||||||||
Hickman's Egg Ranch, Inc. (3%)* | Egg Producer | Subordinated Note (12% Cash, Due 06/19) | 15,049,229 | 14,795,939 | 14,795,939 | |||||||||||
15,049,229 | 14,795,939 | 14,795,939 | ||||||||||||||
HKW Capital Partners IV, L.P. (0%)*(4) | Multi-Sector Holdings | 0.6% Limited Partnership Interest | 778,294 | 701,000 | ||||||||||||
778,294 | 701,000 | |||||||||||||||
HTC Borrower, LLC (5%)* | Hunting and Outdoor Products | Subordinated Note (10% Cash, 3% PIK, Due 09/20) | 25,237,863 | 24,875,856 | 24,875,856 | |||||||||||
25,237,863 | 24,875,856 | 24,875,856 | ||||||||||||||
Huron, Inc. (3%)* | Parts Supplier to Automotive Industry | Subordinated Note (10% Cash, 3% PIK, Due 08/18) | 13,855,242 | 13,800,460 | 13,800,460 | |||||||||||
13,855,242 | 13,800,460 | 13,800,460 | ||||||||||||||
Inland Pipe Rehabilitation Holding Company LLC (2%)* | Cleaning and Repair Services | Subordinated Note (13% Cash, 2.5% PIK, Due 12/16) | 8,713,217 | 8,678,040 | 8,678,040 | |||||||||||
Membership Interest Purchase Warrant (3%) | 853,500 | 1,227,000 | ||||||||||||||
8,713,217 | 9,531,540 | 9,905,040 | ||||||||||||||
Justrite Manufacturing Company, LLC (3%)* | Storage Product Developer and Supplier for Hazardous Materials | Subordinated Note (10% Cash, 2% PIK, Due 07/19) | 14,926,427 | 14,757,063 | 14,757,063 | |||||||||||
Class A Common Units (1,268 units) | 118,110 | 265,000 | ||||||||||||||
Class A Preferred Units (132 units) | 131,890 | 178,000 | ||||||||||||||
14,926,427 | 15,007,063 | 15,200,063 | ||||||||||||||
Magpul Industries Corp. (1%)* | Firearm Accessories Manufacturer and Distributor | Preferred Units (1,470 units) | 1,470,000 | 2,456,000 | ||||||||||||
Common Units (30,000 units) | 30,000 | 1,523,000 | ||||||||||||||
1,500,000 | 3,979,000 | |||||||||||||||
Media Storm, LLC (1%)* | Marketing Services | Subordinated Note (10% Cash, Due 08/19) | 6,545,455 | 6,513,303 | 6,513,303 | |||||||||||
Membership Units (1,216,204 units) | 1,176,957 | 1,256,000 | ||||||||||||||
6,545,455 | 7,690,260 | 7,769,303 | ||||||||||||||
Micross Solutions LLC (5%)* | Provider of Semiconductor Products and Services | Subordinated Note (12% Cash, 3% PIK, Due 06/18) | 23,341,770 | 23,171,170 | 23,171,170 | |||||||||||
Class A-2 Common Units (1,979,524 units) | 2,019,693 | 1,683,000 | ||||||||||||||
23,341,770 | 25,190,863 | 24,854,170 | ||||||||||||||
My Alarm Center, LLC (0%)* | Security Company | Preferred Units (2,000,000 units) | 2,000,000 | 1,846,000 | ||||||||||||
2,000,000 | 1,846,000 | |||||||||||||||
Nautic Partners VII, LP (0%)* | Multi-Sector Holdings | 0.4% Limited Partnership Interest | 697,325 | 891,000 | ||||||||||||
697,325 | 891,000 | |||||||||||||||
Nomacorc, LLC (4%)* | Synthetic Wine Cork Producer | Subordinated Note (10% Cash, 1.8% PIK, Due 07/21) | 20,172,453 | 19,794,945 | 19,794,945 | |||||||||||
Limited Partnership Interest | 2,259,339 | 2,259,339 | ||||||||||||||
20,172,453 | 22,054,284 | 22,054,284 | ||||||||||||||
On Event Services, LLC (4%)* | Equipment Rentals | Subordinated Note (10% Cash, 2% PIK, Due 06/20) | 21,620,018 | 20,850,954 | 20,850,954 | |||||||||||
Warrant to Purchase Units (5.4%) | 1,252,000 | 1,252,000 | ||||||||||||||
21,620,018 | 22,102,954 | 22,102,954 | ||||||||||||||
Orchid Underwriters Agency, LLC (5%)* | Insurance Underwriter | Term B Note (10% Cash, Due 11/19) | 22,885,000 | 22,458,739 | 22,458,739 | |||||||||||
Class A Preferred Units (15,000 units) | 1,500,000 | 1,626,000 | ||||||||||||||
Class A Common Units (15,000 units) | — | 170,000 | ||||||||||||||
22,885,000 | 23,958,739 | 24,254,739 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 2015 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Performance Health & Wellness Holdings, Inc. (1%)* | Rehabilitation and Wellness Products | Class A Limited Partnership Units (15,000 units) | $ | 1,500,000 | $ | 2,622,000 | ||||||||||
1,500,000 | 2,622,000 | |||||||||||||||
PowerDirect Marketing, LLC (1%)* | Marketing Services | Subordinated Note (13% Cash, 2% PIK, Due 12/16)(6) | $ | 8,122,393 | 6,627,482 | 4,154,000 | ||||||||||
Common Unit Purchase Warrants | 590,200 | — | ||||||||||||||
8,122,393 | 7,217,682 | 4,154,000 | ||||||||||||||
Radiant Logistics, Inc. (3%)* | Freight Logistics | Subordinated Note (12% Cash, Due 04/21) | 15,000,000 | 14,708,714 | 14,708,714 | |||||||||||
15,000,000 | 14,708,714 | 14,708,714 | ||||||||||||||
RockYou, Inc. (0%)* | Mobile Game Advertising Network | Common Stock (67,585 shares) | 111,000 | 111,000 | ||||||||||||
111,000 | 111,000 | |||||||||||||||
SPC Partners V, LP (0%)*(4) | Multi-Sector Holdings | 0.7% Limited Partnership Interest | 745,539 | 704,000 | ||||||||||||
745,539 | 704,000 | |||||||||||||||
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 | 15,895,574 | 13,544,030 | |||||||||||
Class C Capital Units (2,000,000 units) | 1,937,421 | 4,617,000 | ||||||||||||||
16,110,043 | 17,832,995 | 18,161,030 | ||||||||||||||
TACH Holdings, Inc. (f/k/a Trinity Consultants Holdings, Inc.) (3%)* | Air Quality Consulting Services | Subordinated Note (10% Cash, 3% PIK, Due 08/20) | 15,403,942 | 15,289,333 | 15,289,333 | |||||||||||
Series A1 Preferred Stock (10,000 units) | — | 132,000 | ||||||||||||||
Common Stock (50,000 units) | 50,000 | 1,189,000 | ||||||||||||||
15,403,942 | 15,339,333 | 16,610,333 | ||||||||||||||
Tate's Bake Shop (2%)* | Producer of Baked Goods | Subordinated Note (10% Cash, 3% PIK, Due 02/20) | 10,258,212 | 10,079,524 | 10,079,524 | |||||||||||
Limited Partner Interest | 999,000 | 1,232,000 | ||||||||||||||
10,258,212 | 11,078,524 | 11,311,524 | ||||||||||||||
TCFI Merlin LLC (3%)* | Specialty Staffing Service Provider | Senior Note (10% Cash, 1% PIK, Due 09/19) | 15,117,914 | 14,854,034 | 14,854,034 |