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. | ||
September 30, 2015 | December 31, 2014 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Investments at fair value: | |||||||
Non-Control / Non-Affiliate investments (cost of $729,080,697 and $717,233,688 at September 30, 2015 and December 31, 2014, respectively) | $ | 712,063,003 | $ | 693,312,886 | |||
Affiliate investments (cost of $218,351,766 and $175,182,171 at September 30, 2015 and December 31, 2014, respectively) | 230,108,814 | 178,935,236 | |||||
Control investments (cost of $37,368,113 and $29,636,763 at September 30, 2015 and December 31, 2014, respectively) | 25,927,233 | 14,975,000 | |||||
Total investments at fair value | 968,099,050 | 887,223,122 | |||||
Cash and cash equivalents | 53,034,307 | 78,759,026 | |||||
Interest and fees receivable | 5,585,320 | 7,409,105 | |||||
Prepaid expenses and other current assets | 977,569 | 438,861 | |||||
Deferred financing fees | 3,672,028 | 1,230,577 | |||||
Property and equipment, net | 119,236 | 108,753 | |||||
Total assets | $ | 1,031,487,510 | $ | 975,169,444 | |||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 5,297,604 | $ | 7,144,673 | |||
Interest payable | 1,266,454 | 3,365,237 | |||||
Taxes payable | 54,152 | 2,506,031 | |||||
Deferred income taxes | 6,050,113 | 3,363,669 | |||||
Borrowings under credit facility | 120,677,107 | 62,619,883 | |||||
Notes | 161,995,214 | 145,646,224 | |||||
SBA-guaranteed debentures payable | 220,413,189 | 219,697,098 | |||||
Total liabilities | 515,753,833 | 444,342,815 | |||||
Commitments and contingencies (Note 7) | |||||||
Net Assets: | |||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 33,321,349 and 32,950,288 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively) | 33,321 | 32,950 | |||||
Additional paid-in capital | 547,444,138 | 542,119,994 | |||||
Investment income in excess of distributions | 13,665,361 | 12,926,514 | |||||
Accumulated realized gains (losses) | (26,075,919 | ) | 12,464,699 | ||||
Net unrealized depreciation | (19,333,224 | ) | (36,717,528 | ) | |||
Total net assets | 515,733,677 | 530,826,629 | |||||
Total liabilities and net assets | $ | 1,031,487,510 | $ | 975,169,444 | |||
Net asset value per share | $ | 15.48 | $ | 16.11 |
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||||||
Investment income: | |||||||||||||||
Interest income: | |||||||||||||||
Non-Control / Non-Affiliate investments | $ | 18,051,486 | $ | 16,415,831 | $ | 51,993,071 | $ | 46,126,230 | |||||||
Affiliate investments | 4,294,512 | 2,293,761 | 12,685,241 | 6,858,273 | |||||||||||
Control investments | 248,609 | 39,742 | 298,090 | 127,085 | |||||||||||
Total interest income | 22,594,607 | 18,749,334 | 64,976,402 | 53,111,588 | |||||||||||
Dividend income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 259,431 | 3,159 | 1,893,825 | 1,054,775 | |||||||||||
Affiliate investments | 323,291 | 967,016 | 860,913 | 2,115,086 | |||||||||||
Total dividend income | 582,722 | 970,175 | 2,754,738 | 3,169,861 | |||||||||||
Fee and other income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 3,308,427 | 1,063,278 | 7,380,865 | 4,101,596 | |||||||||||
Affiliate investments | 337,343 | 175,421 | 2,334,396 | 839,222 | |||||||||||
Control investments | 100,000 | 100,000 | 300,000 | 801,852 | |||||||||||
Total fee and other income | 3,745,770 | 1,338,699 | 10,015,261 | 5,742,670 | |||||||||||
Payment-in-kind interest income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 2,735,701 | 3,087,464 | 8,077,552 | 9,489,524 | |||||||||||
Affiliate investments | 1,126,244 | 668,201 | 3,445,253 | 2,135,374 | |||||||||||
Control investments | — | — | — | 12,071 | |||||||||||
Total payment-in-kind interest income | 3,861,945 | 3,755,665 | 11,522,805 | 11,636,969 | |||||||||||
Interest income from cash and cash equivalents | 58,401 | 61,897 | 178,713 | 193,393 | |||||||||||
Total investment income | 30,843,445 | 24,875,770 | 89,447,919 | 73,854,481 | |||||||||||
Operating expenses: | |||||||||||||||
Interest and other financing fees | 6,561,298 | 5,292,967 | 20,319,093 | 15,591,022 | |||||||||||
General and administrative expenses | 5,764,151 | 4,166,165 | 16,675,066 | 14,345,132 | |||||||||||
Total operating expenses | 12,325,449 | 9,459,132 | 36,994,159 | 29,936,154 | |||||||||||
Net investment income | 18,517,996 | 15,416,638 | 52,453,760 | 43,918,327 | |||||||||||
Realized and unrealized gains (losses) on investments and foreign currency borrowings: | |||||||||||||||
Net realized gains (losses): | |||||||||||||||
Non-Control / Non-Affiliate investments | 2,331,742 | 5,231,548 | 8,746,844 | 16,966,024 | |||||||||||
Affiliate investments | (503,907 | ) | (200,000 | ) | (237,399 | ) | 28,252 | ||||||||
Control investments | (18,323,508 | ) | — | (38,807,152 | ) | (208,553 | ) | ||||||||
Net realized gains (losses) | (16,495,673 | ) | 5,031,548 | (30,297,707 | ) | 16,785,723 | |||||||||
Net unrealized appreciation (depreciation): | |||||||||||||||
Investments | 14,375,221 | (29,639,438 | ) | 15,441,528 | (32,310,388 | ) | |||||||||
Foreign currency borrowings | 1,081,391 | 501,364 | 1,942,776 | 466,630 | |||||||||||
Net unrealized appreciation (depreciation) | 15,456,612 | (29,138,074 | ) | 17,384,304 | (31,843,758 | ) | |||||||||
Net realized and unrealized gains (losses) on investments and foreign currency borrowings | (1,039,061 | ) | (24,106,526 | ) | (12,913,403 | ) | (15,058,035 | ) | |||||||
Loss on extinguishment of debt | — | — | (1,394,017 | ) | — | ||||||||||
Benefit (Provision) for taxes | 393,437 | (122,439 | ) | 255,562 | (975,782 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 17,872,372 | $ | (8,812,327 | ) | $ | 38,401,902 | $ | 27,884,510 | ||||||
Net investment income per share—basic and diluted | $ | 0.56 | $ | 0.51 | $ | 1.58 | $ | 1.53 | |||||||
Net increase (decrease) in net assets resulting from operations per share—basic and diluted | $ | 0.54 | $ | (0.29 | ) | $ | 1.16 | $ | 0.97 | ||||||
Dividends/distributions per share: | |||||||||||||||
Regular quarterly dividends/distributions | $ | 0.54 | $ | 0.54 | $ | 1.62 | $ | 1.62 | |||||||
Supplemental dividends/distributions | 0.05 | 0.05 | 0.15 | 0.35 | |||||||||||
Total dividends/distributions per share | $ | 0.59 | $ | 0.59 | $ | 1.77 | $ | 1.97 | |||||||
Weighted average shares outstanding—basic and diluted | 33,274,586 | 30,412,036 | 33,203,414 | 28,718,753 |
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 |
Common Stock | Additional Paid-In Capital | Investment Income in Excess of Distributions | Accumulated Realized Gains (Losses) 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 | — | — | — | 52,453,760 | — | — | 52,453,760 | |||||||||||||||||||
Stock-based compensation | — | — | 5,200,761 | — | — | — | 5,200,761 | |||||||||||||||||||
Realized gain (loss) on investments | — | — | — | — | (30,297,707 | ) | 29,641,715 | (655,992 | ) | |||||||||||||||||
Net unrealized loss on investments / foreign currency | — | — | — | — | — | (12,257,411 | ) | (12,257,411 | ) | |||||||||||||||||
Loss on extinguishment of debt | — | — | — | (1,394,017 | ) | — | — | (1,394,017 | ) | |||||||||||||||||
Tax benefit | — | — | — | 255,562 | — | — | 255,562 | |||||||||||||||||||
Dividends / distributions | 125,298 | 125 | 2,676,308 | (50,576,458 | ) | (8,242,911 | ) | — | (56,142,936 | ) | ||||||||||||||||
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 | (115,077 | ) | (115 | ) | (2,497,597 | ) | — | — | — | (2,497,712 | ) | |||||||||||||||
Balance, September 30, 2015 | 33,321,349 | $ | 33,321 | $ | 547,444,138 | $ | 13,665,361 | $ | (26,075,919 | ) | $ | (19,333,224 | ) | $ | 515,733,677 |
Nine Months Ended | Nine Months Ended | ||||||
September 30, 2015 | September 30, 2014 | ||||||
Cash flows from operating activities: | |||||||
Net increase in net assets resulting from operations | $ | 38,401,902 | $ | 27,884,510 | |||
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: | |||||||
Purchases of portfolio investments | (352,445,028 | ) | (345,617,501 | ) | |||
Repayments received/sales of portfolio investments | 261,002,599 | 154,891,195 | |||||
Loan origination and other fees received | 5,741,331 | 5,669,609 | |||||
Net realized loss (gain) on investments | 30,297,707 | (16,785,723 | ) | ||||
Net unrealized depreciation (appreciation) on investments | (18,127,974 | ) | 32,073,570 | ||||
Net unrealized appreciation on foreign currency borrowings | (1,942,776 | ) | (466,630 | ) | |||
Deferred income taxes | 2,686,444 | 236,818 | |||||
Payment-in-kind interest accrued, net of payments received | (2,084,305 | ) | (3,965,352 | ) | |||
Amortization of deferred financing fees | 1,636,224 | 1,225,815 | |||||
Loss on extinguishment of debt | 1,394,017 | — | |||||
Accretion of loan origination and other fees | (4,897,834 | ) | (2,705,077 | ) | |||
Accretion of loan discounts | (362,424 | ) | (809,647 | ) | |||
Accretion of discount on SBA-guaranteed debentures payable | 140,185 | 137,257 | |||||
Depreciation expense | 44,552 | 33,412 | |||||
Stock-based compensation | 5,200,761 | 4,334,437 | |||||
Changes in operating assets and liabilities: | |||||||
Interest and fees receivable | 1,823,785 | 764,525 | |||||
Prepaid expenses and other current assets | (538,708 | ) | 187,748 | ||||
Accounts payable and accrued liabilities | (1,847,069 | ) | (3,693,239 | ) | |||
Interest payable | (2,098,783 | ) | (1,927,801 | ) | |||
Taxes payable | (2,451,879 | ) | (636,511 | ) | |||
Net cash used in operating activities | (38,427,273 | ) | (149,168,585 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (55,035 | ) | (70,644 | ) | |||
Net cash used in investing activities | (55,035 | ) | (70,644 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings under SBA-guaranteed debentures payable | — | 31,310,000 | |||||
Borrowings under credit facility | 174,000,000 | 20,000,000 | |||||
Repayments of credit facility | (114,000,000 | ) | (20,000,000 | ) | |||
Proceeds from notes | 83,372,640 | — | |||||
Redemption of notes | (69,000,000 | ) | — | ||||
Financing fees paid | (2,919,436 | ) | (801,475 | ) | |||
Net proceeds (expenses) related to public offering of common stock | (54,967 | ) | 127,821,377 | ||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (2,497,712 | ) | (2,608,031 | ) | |||
Cash dividends/distributions paid | (56,142,936 | ) | (55,774,847 | ) | |||
Net cash provided by financing activities | 12,757,589 | 99,947,024 | |||||
Net decrease in cash and cash equivalents | (25,724,719 | ) | (49,292,205 | ) | |||
Cash and cash equivalents, beginning of period | 78,759,026 | 133,304,346 | |||||
Cash and cash equivalents, end of period | $ | 53,034,307 | $ | 84,012,141 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 19,798,265 | $ | 15,625,243 | |||
Summary of non-cash financing transactions: | |||||||
Dividends/distributions paid through DRIP share issuances | $ | 2,676,433 | $ | 2,119,348 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 30, 2015 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Non–Control / Non–Affiliate Investments: | ||||||||||||||||
Access Medical Acquisition, Inc. (3%)* | Operator of Primary Care Clinics | Subordinated Notes (10% Cash, 2% PIK, Due 01/22) | $ | 13,819,514 | $ | 13,552,150 | $ | 13,552,150 | ||||||||
Class A Units (1,500,000 units) | 1,500,000 | 1,500,000 | ||||||||||||||
13,819,514 | 15,052,150 | 15,052,150 | ||||||||||||||
ADCS Clinics, LLC (1%)* | Operator of Dermatology Clinics | Subordinated Note (11% Cash, 2% PIK, Due 05/20) | 7,504,167 | 7,354,167 | 7,354,167 | |||||||||||
7,504,167 | 7,354,167 | 7,354,167 | ||||||||||||||
Agilex Flavors & Fragrances, Inc. (3%)* | Custom Fragrance Producer | Subordinated Note (12% Cash, 1.5% PIK, Due 06/19) | 13,039,493 | 12,872,545 | 12,872,545 | |||||||||||
Common Units (1,250 units) | 1,250,000 | 2,505,000 | ||||||||||||||
13,039,493 | 14,122,545 | 15,377,545 | ||||||||||||||
AGM Automotive, LLC (0%)* | Auto Industry Interior Components Supplier | Class A Units (1,500,000 units) | 630,134 | 1,473,000 | ||||||||||||
630,134 | 1,473,000 | |||||||||||||||
All Metals Holding, LLC (1%)* | Steel Processor & Distributor | Subordinated Note (10.5% Cash, Due 12/19) | 5,000,000 | 4,877,016 | 4,877,016 | |||||||||||
Units (34,732 units) | 122,000 | 122,000 | ||||||||||||||
5,000,000 | 4,999,016 | 4,999,016 | ||||||||||||||
All Metro Health Care Services, Inc. (3%)* | Home Care Service Provider | Subordinated Note (10% Cash, 2% PIK, Due 03/20) | 17,350,000 | 16,982,515 | 16,982,515 | |||||||||||
17,350,000 | 16,982,515 | 16,982,515 | ||||||||||||||
Applied-Cleveland Holdings, Inc. (5%)* | Oil and Gas Pipeline Infrastructure Inspection Services | Subordinated Notes (10% Cash, 2% PIK, Due 06/19) | 23,351,194 | 23,079,384 | 23,079,384 | |||||||||||
Class A Units (2,129,032 units) | 2,129,032 | 1,803,000 | ||||||||||||||
23,351,194 | 25,208,416 | 24,882,384 | ||||||||||||||
Audio and Video Labs Holdings, Inc. (2%)* | Manufacturer and Distributor for Independent Artists and Authors | Subordinated Notes (12% Cash, 2% PIK, Due 06/18) | 10,454,503 | 10,334,742 | 10,334,742 | |||||||||||
Common Stock (138 shares) | 1,300,000 | 1,628,000 | ||||||||||||||
10,454,503 | 11,634,742 | 11,962,742 | ||||||||||||||
Avkem International, LLC (1%)* | Flux and Foundry Manufacturer and Supplier | Subordinated Note (10% Cash, 4% PIK, Due 12/17) | 4,003,111 | 3,923,111 | 3,923,111 | |||||||||||
4,003,111 | 3,923,111 | 3,923,111 | ||||||||||||||
Baker Hill Acquisition, LLC (3%)* | Loan Origination Software Solutions Provider | Subordinated Notes (11.5% Cash, Due 03/21) | 13,500,000 | 13,297,500 | 13,297,500 | |||||||||||
Limited Partner Interest | 1,498,500 | 1,498,500 | ||||||||||||||
13,500,000 | 14,796,000 | 14,796,000 | ||||||||||||||
BFN Operations LLC (1%)* | Wholesale Grower and Distributor of Shrubs, Trees and Plants | First-Out Subordinated Note (3% Cash, 14% PIK, Due 06/18)(5) | 14,933,132 | 14,162,530 | 6,500,000 | |||||||||||
Last-Out Subordinated Note (17% PIK, Due 06/18)(6) | 2,018,722 | 1,957,027 | — | |||||||||||||
16,951,854 | 16,119,557 | 6,500,000 | ||||||||||||||
Cafe Enterprises, Inc. (3%)* | Restaurant | Subordinated Note (12% Cash, 1% PIK, Due 09/19) | 12,344,925 | 12,155,762 | 12,155,762 | |||||||||||
Series C Preferred Stock (10,000 shares) | 1,000,000 | 1,292,000 | ||||||||||||||
12,344,925 | 13,155,762 | 13,447,762 | ||||||||||||||
Capital Contractors, Inc. (1%)* | Janitorial and Facilities Maintenance Services | Subordinated Notes (5% Cash, Due 12/16) | 9,843,542 | 9,634,265 | 7,056,000 | |||||||||||
Series A Redeemable Preferred Stock (200 shares) | 2,000,000 | — | ||||||||||||||
Common Stock Warrants (20 shares) | 492,000 | — | ||||||||||||||
9,843,542 | 12,126,265 | 7,056,000 | ||||||||||||||
Carolina Beverage Group, LLC (0%)* | Beverage Manufacturing and Packaging | Class B Units (11,974 units) | 119,735 | 688,000 | ||||||||||||
119,735 | 688,000 | |||||||||||||||
Centerfield Media Holding Company (4%)* | Digital Marketing | Subordinated Note (10% Cash, 3.5% PIK, Due 03/21) | 18,040,250 | 17,680,250 | 17,680,250 | |||||||||||
Common Shares (1,000 shares) | 1,000,000 | 1,000,000 | ||||||||||||||
18,040,250 | 18,680,250 | 18,680,250 | ||||||||||||||
Chromaflo Technologies Parent LP (2%)* | Colorant Manufacturer and Distributor | Second Lien Term Loan (8.3% Cash, Due 06/20) | 9,999,618 | 9,960,588 | 9,960,588 | |||||||||||
Class A Units (22,561 units) | 906,604 | 1,922,000 | ||||||||||||||
9,999,618 | 10,867,192 | 11,882,588 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) September 30, 2015 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Community Intervention Services, Inc. (3%)* | Provider of Behavioral Health Services | Subordinated Note (10% Cash, 3% PIK, Due 01/21) | $ | 15,448,572 | $ | 15,149,060 | $ | 15,149,060 | ||||||||
15,448,572 | 15,149,060 | 15,149,060 | ||||||||||||||
Comverge, Inc. (3%)* | Provider of Intelligent Energy Management Solutions | Senior Note (12% Cash, Due 05/18) | 15,505,583 | 15,336,775 | 15,336,775 | |||||||||||
Preferred Stock (703 shares) | 554,458 | 694,000 | ||||||||||||||
Common Stock (1,000,000 shares) | 100,000 | 253,000 | ||||||||||||||
15,505,583 | 15,991,233 | 16,283,775 | ||||||||||||||
Continental Anesthesia Management, LLC (2%)* | Physicians Management Services | Subordinated Note (10% Cash, 4% PIK Due 04/16) | 10,569,647 | 10,567,371 | 10,567,371 | |||||||||||
Warrant (263 shares) | 276,100 | — | ||||||||||||||
10,569,647 | 10,843,471 | 10,567,371 | ||||||||||||||
CPower Ultimate HoldCo, LLC (0%)* | Demand Response Business | Units (345,542 units) | 345,542 | 345,542 | ||||||||||||
345,542 | 345,542 | |||||||||||||||
CWS Acquisition Corp. (0%)* | Manufacturer of Custom Windows and Sliding Doors | 1,500,000 Class A Units | 1,500,000 | 1,500,000 | ||||||||||||
1,500,000 | 1,500,000 | |||||||||||||||
Danville Materials, LLC (2%)* | Manufacturer of Dental Products | Subordinated Note (10% Cash, Due 12/18) | 7,237,000 | 7,127,430 | 7,127,430 | |||||||||||
Common Units (45,492 units) | 500,000 | 1,532,000 | ||||||||||||||
7,237,000 | 7,627,430 | 8,659,430 | ||||||||||||||
Data Source Holdings, LLC (0%)* | Print Supply Chain Management Services | Common Units (47,503 units) | 1,000,000 | 980,000 | ||||||||||||
1,000,000 | 980,000 | |||||||||||||||
DialogDirect, Inc. (5%)* | Business Process Outsourcing Provider | Subordinated Notes (12% Cash, 1.5% PIK, Due 04/20) | 24,342,236 | 24,135,213 | 24,135,213 | |||||||||||
24,342,236 | 24,135,213 | 24,135,213 | ||||||||||||||
DLC Acquisition, LLC (4%)* | Staffing Firm | Senior Notes (10% Cash, Due 07/19) | 22,214,062 | 21,839,281 | 21,839,281 | |||||||||||
22,214,062 | 21,839,281 | 21,839,281 | ||||||||||||||
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) | 7,345,535 | 7,255,130 | 7,255,130 | |||||||||||
Series A Units (600,000 units) | 600,000 | 440,000 | ||||||||||||||
7,345,535 | 7,855,130 | 7,695,130 | ||||||||||||||
Eckler's Holdings, Inc. (1%)* | Restoration Parts and Accessories for Classic Cars and Trucks | Subordinated Note (11% Cash, 4.5% PIK, Due 07/18)(6) | 7,716,934 | 7,622,202 | 7,337,000 | |||||||||||
Common Stock (18,029 shares) | 183,562 | — | ||||||||||||||
Preferred Stock A (1,596 shares) | 1,596,126 | — | ||||||||||||||
7,716,934 | 9,401,890 | 7,337,000 | ||||||||||||||
Electronic Systems Protection, Inc. (0%)* | Power Protection Systems Manufacturing | Common Stock (570 shares) | 285,000 | 481,000 | ||||||||||||
285,000 | 481,000 | |||||||||||||||
FCL Graphics, Inc. (0%)* | Commercial Printing Services | Senior Note (4.8% Cash, Due 09/16) | 1,048,907 | 1,048,907 | 752,000 | |||||||||||
Senior Note (7.8% Cash, 2% PIK, Due 09/16)(5) | 1,238,463 | 1,207,439 | — | |||||||||||||
2,287,370 | 2,256,346 | 752,000 | ||||||||||||||
Flowchem Ltd. (2%)* | Provider of Support Services to Crude Oil Pipeline Operators | Subordinated Note (11% Cash, 2% PIK, Due 06/19) | 7,956,475 | 7,841,182 | 7,956,475 | |||||||||||
Common Units (1,000,000 units) | 914,835 | 1,982,000 | ||||||||||||||
7,956,475 | 8,756,017 | 9,938,475 | ||||||||||||||
FrontStream Holdings, LLC (3%)* | Payment and Donation Management Product Service Provider | Subordinated Note (12.5% Cash, Due 12/20) | 13,375,000 | 13,227,648 | 13,227,648 | |||||||||||
Series C-2 Preferred Shares (500 shares) | 500,000 | 500,000 | ||||||||||||||
13,375,000 | 13,727,648 | 13,727,648 | ||||||||||||||
Frontstreet Facility Solutions, Inc. (1%)* | Retail, Restaurant and Commercial Facilities Maintenance | Subordinated Note (13% Cash, Due 07/18) | 8,462,629 | 8,385,853 | 6,476,000 | |||||||||||
Series A Convertible Preferred Stock (2,500 shares) | 250,000 | — | ||||||||||||||
Series B Convertible Preferred Stock (5,556 shares) | 500,000 | — | ||||||||||||||
8,462,629 | 9,135,853 | 6,476,000 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) September 30, 2015 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Frozen Specialties, Inc. (2%)* | Frozen Foods Manufacturer | Subordinated Note (10% Cash, 4% PIK, Due 05/17) | $ | 13,000,183 | $ | 13,000,183 | $ | 12,477,000 | ||||||||
13,000,183 | 13,000,183 | 12,477,000 | ||||||||||||||
Garden Fresh Restaurant Holding, LLC (0%)* | Restaurant | Class A Units (5,000 units) | 500,000 | 73,000 | ||||||||||||
500,000 | 73,000 | |||||||||||||||
GST AutoLeather, Inc. (4%)* | Supplier of Automotive Interior Leather | Subordinated Note (11% Cash, 2% PIK, Due 01/21) | 22,551,785 | 22,167,982 | 22,167,982 | |||||||||||
22,551,785 | 22,167,982 | 22,167,982 | ||||||||||||||
Hatch Chile Co., LLC (0%)* | Food Products Distributor | Unit Purchase Warrant (7,817 units) | 295,800 | 1,423,000 | ||||||||||||
295,800 | 1,423,000 | |||||||||||||||
HKW Capital Partners IV, L.P. (0%)*(4) | Multi-Sector Holdings | 0.6% Limited Partnership Interest | 906,719 | 819,000 | ||||||||||||
906,719 | 819,000 | |||||||||||||||
HTC Borrower, LLC (5%)* | Hunting and Outdoor Products | Subordinated Notes (10% Cash, 3% PIK, Due 09/20) | 25,431,354 | 25,082,665 | 25,082,665 | |||||||||||
25,431,354 | 25,082,665 | 25,082,665 | ||||||||||||||
Inland Pipe Rehabilitation Holding Company LLC (2%)* | Cleaning and Repair Services | Subordinated Notes (10% Cash, 5.5% PIK, Due 12/16) | 9,510,790 | 9,481,017 | 8,925,000 | |||||||||||
Membership Interest Purchase Warrant (3%) | 853,500 | — | ||||||||||||||
9,510,790 | 10,334,517 | 8,925,000 | ||||||||||||||
Justrite Manufacturing Company, LLC (3%)* | Storage Product Developer and Supplier for Hazardous Materials | Subordinated Note (10% Cash, 2% PIK, Due 07/19) | 15,002,718 | 14,842,093 | 14,842,093 | |||||||||||
Class A Common Units (1,268 units) | 118,110 | 345,000 | ||||||||||||||
Class A Preferred Units (132 units) | 131,890 | 152,000 | ||||||||||||||
15,002,718 | 15,092,093 | 15,339,093 | ||||||||||||||
Magpul Industries Corp. (1%)* | Firearm Accessories Manufacturer and Distributor | Preferred Units (1,470 units) | 1,470,000 | 2,542,000 | ||||||||||||
Common Units (30,000 units) | 30,000 | 2,975,000 | ||||||||||||||
1,500,000 | 5,517,000 | |||||||||||||||
Media Storm, LLC (1%)* | Marketing Services | Subordinated Note (10% Cash, Due 08/19) | 6,545,455 | 6,516,533 | 6,516,533 | |||||||||||
Membership Units (1,216,204 units) | 1,176,957 | 1,099,000 | ||||||||||||||
6,545,455 | 7,693,490 | 7,615,533 | ||||||||||||||
Micross Solutions LLC (5%)* | Provider of Semiconductor Products and Services | Subordinated Note (12% Cash, 3% PIK, Due 06/18) | 23,521,181 | 23,362,602 | 23,362,602 | |||||||||||
Class A-2 Common Units (1,979,524 units) | 2,019,693 | 1,414,000 | ||||||||||||||
23,521,181 | 25,382,295 | 24,776,602 | ||||||||||||||
Motor Vehicle Software Corporation (4%)* | Provider of EVR Services | Subordinated Note (10% Cash, 1% PIK, Due 03/21) | 20,015,000 | 19,615,000 | 19,615,000 | |||||||||||
20,015,000 | 19,615,000 | 19,615,000 | ||||||||||||||
My Alarm Center, LLC (0%)* | Security Company | Preferred Units (2,000,000 units) | 2,000,000 | 1,791,000 | ||||||||||||
2,000,000 | 1,791,000 | |||||||||||||||
Nautic Partners VII, LP (0%)*(4) | Multi-Sector Holdings | 0.4% Limited Partnership Interest | 542,013 | 851,000 | ||||||||||||
542,013 | 851,000 | |||||||||||||||
Nomacorc, LLC (4%)* | Synthetic Wine Cork Producer | Subordinated Note (10% Cash, 2.25% PIK, Due 07/21) | 20,288,445 | 19,922,607 | 19,922,607 | |||||||||||
Limited Partnership Interest | 2,264,587 | 2,264,587 | ||||||||||||||
20,288,445 | 22,187,194 | 22,187,194 | ||||||||||||||
On Event Services, LLC (4%)* | Equipment Rentals | Subordinated Notes (10% Cash, 2% PIK, Due 06/20) | 21,730,709 | 20,997,842 | 20,997,842 | |||||||||||
Warrant to Purchase Units (5.4%) | 1,252,000 | 1,859,000 | ||||||||||||||
Option to Acquire Warrants | — | 379,000 | ||||||||||||||
21,730,709 | 22,249,842 | 23,235,842 | ||||||||||||||
Orchid Underwriters Agency, LLC (5%)* | Insurance Underwriter | Term B Note (10% Cash, Due 11/19) | 22,885,000 | 22,479,113 | 22,479,113 | |||||||||||
Class A Preferred Units (15,000 units) | 1,500,000 | 1,680,000 | ||||||||||||||
Class A Common Units (15,000 units) | — | 323,000 | ||||||||||||||
22,885,000 | 23,979,113 | 24,482,113 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) September 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) | $ | 8,439,133 | 6,627,482 | 2,714,000 | ||||||||||
Common Unit Purchase Warrants | 590,200 | — | ||||||||||||||
8,439,133 | 7,217,682 | 2,714,000 | ||||||||||||||
Radiant Logistics, Inc. (3%)* | Freight Logistics | Subordinated Note (12% Cash, Due 04/21) | 15,000,000 | 14,717,690 | 14,717,690 | |||||||||||
15,000,000 | 14,717,690 | 14,717,690 | ||||||||||||||
RockYou, Inc. (0%)* | Mobile Game Advertising Network | Common Stock (67,585 shares) | 111,000 | 111,000 | ||||||||||||
111,000 | 111,000 | |||||||||||||||
Rotolo Consultants, Inc. (2%)* | Landscape Services | Subordinated Note (11% Cash, 3% PIK, Due 08/21) | 6,645,987 | 6,513,487 | 6,513,487 | |||||||||||
Series A Preferred Units (39 units) | 3,654,253 | 3,654,253 | ||||||||||||||
6,645,987 | 10,167,740 | 10,167,740 | ||||||||||||||
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. (3%)*(4) | Sand and Particulate Removal Equipment Provider for Oil and Gas Companies | Subordinated Note (12% Cash, 2% PIK, Due 03/20) | 16,110,043 | 15,906,543 | 12,473,609 | |||||||||||
Class C Capital Units (2,000,000 units) | 1,937,421 | 4,353,000 | ||||||||||||||
16,110,043 | 17,843,964 | 16,826,609 | ||||||||||||||
Tate's Bake Shop (2%)* | Producer of Baked Goods | Subordinated Note (10% Cash, 3% PIK, Due 02/20) | 10,336,858 | 10,165,632 | 10,165,632 | |||||||||||
Limited Partner Interest | 999,000 | 1,202,000 | ||||||||||||||
10,336,858 | 11,164,632 | 11,367,632 | ||||||||||||||
TCFI Merlin LLC (3%)* | Specialty Staffing Service Provider | Senior Note (10% Cash, 1% PIK, Due 09/19) | 14,458,808 | 14,207,575 | 14,207,575 | |||||||||||
Limited Partnership Units (500,000 units) | 500,000 | 500,000 | ||||||||||||||
14,458,808 | 14,707,575 | 14,707,575 | ||||||||||||||
The Cook & Boardman Group, LLC (3%)* | Distributor of Doors and Related Products | Subordinated Note (10% Cash, 2.5% PIK, Due 03/20) | 14,377,192 | 14,137,476 | 14,137,476 |