Table of Contents

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, 2015

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 4, 2015 was 33,321,349.

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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, 2015 and Consolidated Balance Sheet as of December 31, 2014	3
	Unaudited Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2015 and 2014	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Nine Months Ended September 30, 2015 and 2014	5
	Unaudited Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2015 and 2014	6
	Unaudited Consolidated Schedule of Investments as of September 30, 2015	7
	Consolidated Schedule of Investments as of December 31, 2014	14
	Notes to Unaudited Consolidated Financial Statements	21
	Unaudited Schedule of Investments in and Advances to Affiliates for the Nine Months Ended September 30, 2015	37
	Schedule of Investments in and Advances to Affiliates for the Year Ended December 31, 2015	41
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	45
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	58
Item 4.	Controls and Procedures	59
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	60
Item 1A.	Risk Factors	60
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	60
Item 3.	Defaults Upon Senior Securities	61
Item 4.	Mine Safety Disclosures	61
Item 5.	Other Information	61
Item 6.	Exhibits	62
Signatures		64
Exhibits

2

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

TRIANGLE CAPITAL CORPORATION

Consolidated Balance Sheets

	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

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, 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

See accompanying notes.

4

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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, 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

See accompanying notes.

5

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows 

	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

See accompanying notes.

6

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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

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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

8

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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

9

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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