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. | ||
March 31, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Investments at fair value: | |||||||
Non-Control / Non-Affiliate investments (cost of $759,385,335 and $795,244,907 at March 31, 2016 and December 31, 2015, respectively) | $ | 740,511,577 | $ | 774,238,518 | |||
Affiliate investments (cost of $167,897,411 and $171,486,103 at March 31, 2016 and December 31, 2015, respectively) | 173,842,446 | 177,581,965 | |||||
Control investments (cost of $40,118,113 and $40,618,113 at March 31, 2016 and December 31, 2015, respectively) | 25,622,233 | 25,456,233 | |||||
Total investments at fair value | 939,976,256 | 977,276,716 | |||||
Cash and cash equivalents | 64,162,614 | 52,615,418 | |||||
Interest and fees receivable | 6,783,399 | 4,892,146 | |||||
Prepaid expenses and other current assets | 1,833,905 | 947,068 | |||||
Deferred financing fees | 3,287,455 | 3,480,444 | |||||
Property and equipment, net | 124,022 | 105,698 | |||||
Total assets | $ | 1,016,167,651 | $ | 1,039,317,490 | |||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 2,238,206 | $ | 7,463,514 | |||
Interest payable | 1,558,369 | 3,714,470 | |||||
Taxes payable | — | 735,498 | |||||
Deferred income taxes | 4,551,800 | 4,988,317 | |||||
Borrowings under credit facility | 128,109,192 | 131,256,669 | |||||
Notes | 162,292,089 | 162,142,478 | |||||
SBA-guaranteed debentures payable | 213,070,081 | 220,648,789 | |||||
Total liabilities | 511,819,737 | 530,949,735 | |||||
Commitments and contingencies (Note 7) | |||||||
Net Assets: | |||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 33,576,436 and 33,375,126 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively) | 33,576 | 33,375 | |||||
Additional paid-in capital | 550,903,360 | 549,242,439 | |||||
Investment income in excess of distributions | 7,628,164 | 16,127,141 | |||||
Accumulated realized losses | (25,227,115 | ) | (25,813,329 | ) | |||
Net unrealized depreciation | (28,990,071 | ) | (31,221,871 | ) | |||
Total net assets | 504,347,914 | 508,367,755 | |||||
Total liabilities and net assets | $ | 1,016,167,651 | $ | 1,039,317,490 | |||
Net asset value per share | $ | 15.02 | $ | 15.23 |
Three Months Ended | Three Months Ended | |||||||
March 31, 2016 | March 31, 2015 | |||||||
Investment income: | ||||||||
Interest income: | ||||||||
Non-Control / Non-Affiliate investments | $ | 18,182,654 | $ | 16,958,700 | ||||
Affiliate investments | 3,384,369 | 4,191,349 | ||||||
Control investments | 193,616 | — | ||||||
Total interest income | 21,760,639 | 21,150,049 | ||||||
Dividend income: | ||||||||
Non-Control / Non-Affiliate investments | (1,246,760 | ) | 1,588,705 | |||||
Affiliate investments | 160,055 | 256,253 | ||||||
Total dividend income | (1,086,705 | ) | 1,844,958 | |||||
Fee and other income: | ||||||||
Non-Control / Non-Affiliate investments | 1,623,886 | 3,237,346 | ||||||
Affiliate investments | 310,015 | 496,957 | ||||||
Control investments | 100,000 | 100,000 | ||||||
Total fee and other income | 2,033,901 | 3,834,303 | ||||||
Payment-in-kind interest income: | ||||||||
Non-Control / Non-Affiliate investments | 2,921,604 | 2,728,323 | ||||||
Affiliate investments | 989,213 | 1,169,001 | ||||||
Control investments | — | — | ||||||
Total payment-in-kind interest income | 3,910,817 | 3,897,324 | ||||||
Interest income from cash and cash equivalents | 37,218 | 52,936 | ||||||
Total investment income | 26,655,870 | 30,779,570 | ||||||
Operating expenses: | ||||||||
Interest and other financing fees | 6,518,570 | 6,432,455 | ||||||
Compensation expenses | 9,450,493 | 5,408,623 | ||||||
General and administrative expenses | 1,088,724 | 1,168,913 | ||||||
Total operating expenses | 17,057,787 | 13,009,991 | ||||||
Net investment income | 9,598,083 | 17,769,579 | ||||||
Realized and unrealized gains (losses) on investments and foreign currency borrowings: | ||||||||
Net realized gains: | ||||||||
Non-Control / Non-Affiliate investments | 584,787 | 3,236,669 | ||||||
Affiliate investments | 1,427 | 27,702 | ||||||
Net realized gains | 586,214 | 3,264,371 | ||||||
Net unrealized appreciation (depreciation): | ||||||||
Investments | 3,084,323 | (13,715,840 | ) | |||||
Foreign currency borrowings | (852,523 | ) | 1,173,707 | |||||
Net unrealized appreciation (depreciation) | 2,231,800 | (12,542,133 | ) | |||||
Net realized and unrealized gains (losses) on investments and foreign currency borrowings | 2,818,014 | (9,277,762 | ) | |||||
Benefit (provision) for taxes | 11,161 | (137,875 | ) | |||||
Net increase in net assets resulting from operations | $ | 12,427,258 | $ | 8,353,942 | ||||
Net investment income per share—basic and diluted | $ | 0.29 | $ | 0.54 | ||||
Net increase in net assets resulting from operations per share—basic and diluted | $ | 0.37 | $ | 0.25 | ||||
Dividends/distributions per share: | ||||||||
Regular quarterly dividends/distributions | $ | 0.54 | $ | 0.54 | ||||
Supplemental dividends/distributions | — | 0.05 | ||||||
Total dividends/distributions per share | $ | 0.54 | $ | 0.59 | ||||
Weighted average shares outstanding—basic and diluted | 33,480,346 | 33,099,197 |
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 | — | — | — | 17,769,579 | — | — | 17,769,579 | |||||||||||||||||||
Stock-based compensation | — | — | 1,642,297 | — | — | — | 1,642,297 | |||||||||||||||||||
Realized gain (loss) on investments | — | — | — | — | 3,264,371 | (3,370,439 | ) | (106,068 | ) | |||||||||||||||||
Net unrealized loss on investments / foreign currency | — | — | — | — | — | (9,171,694 | ) | (9,171,694 | ) | |||||||||||||||||
Provision for taxes | — | — | — | (137,875 | ) | — | — | (137,875 | ) | |||||||||||||||||
Dividends / distributions | 35,548 | 36 | 830,010 | (19,582,147 | ) | — | — | (18,752,101 | ) | |||||||||||||||||
Expenses related to public offering of common stock | — | — | (54,967 | ) | — | — | — | (54,967 | ) | |||||||||||||||||
Issuance of restricted stock | 350,000 | 350 | (350 | ) | — | — | — | — | ||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (110,209 | ) | (110 | ) | (2,400,242 | ) | — | — | — | (2,400,352 | ) | |||||||||||||||
Balance, March 31, 2015 | 33,225,627 | $ | 33,226 | $ | 542,136,742 | $ | 10,976,071 | $ | 15,729,070 | $ | (49,259,661 | ) | $ | 519,615,448 |
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, 2015 | 33,375,126 | $ | 33,375 | $ | 549,242,439 | $ | 16,127,141 | $ | (25,813,329 | ) | $ | (31,221,871 | ) | $ | 508,367,755 | |||||||||||
Net investment income | — | — | — | 9,598,083 | — | — | 9,598,083 | |||||||||||||||||||
Stock-based compensation | — | — | 4,301,118 | — | — | — | 4,301,118 | |||||||||||||||||||
Realized gain (loss) on investments | — | — | — | — | 586,214 | (351,458 | ) | 234,756 | ||||||||||||||||||
Net unrealized loss on investments / foreign currency | — | — | — | — | — | 2,583,258 | 2,583,258 | |||||||||||||||||||
Tax benefit | — | — | — | 11,161 | — | — | 11,161 | |||||||||||||||||||
Dividends / distributions | 42,694 | 42 | 844,036 | (18,108,221 | ) | — | — | (17,264,143 | ) | |||||||||||||||||
Issuance of restricted stock | 351,000 | 351 | (351 | ) | — | — | — | — | ||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (192,384 | ) | (192 | ) | (3,483,882 | ) | — | — | — | (3,484,074 | ) | |||||||||||||||
Balance, March 31, 2016 | 33,576,436 | $ | 33,576 | $ | 550,903,360 | $ | 7,628,164 | $ | (25,227,115 | ) | $ | (28,990,071 | ) | $ | 504,347,914 |
Three Months Ended | Three Months Ended | ||||||
March 31, 2016 | March 31, 2015 | ||||||
Cash flows from operating activities: | |||||||
Net increase in net assets resulting from operations | $ | 12,427,258 | $ | 8,353,942 | |||
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: | |||||||
Purchases of portfolio investments | (11,812,331 | ) | (98,213,197 | ) | |||
Repayments received/sales of portfolio investments | 53,620,680 | 97,094,750 | |||||
Loan origination and other fees received | 274,158 | 1,606,861 | |||||
Net realized gain on investments | (586,214 | ) | (3,264,371 | ) | |||
Net unrealized depreciation appreciation on investments | (2,647,804 | ) | 13,870,791 | ||||
Net unrealized depreciation (appreciation) on foreign currency borrowings | 852,523 | (1,173,707 | ) | ||||
Deferred income taxes | (436,517 | ) | (154,951 | ) | |||
Payment-in-kind interest accrued, net of payments received | (317,840 | ) | 810,547 | ||||
Amortization of deferred financing fees | 531,993 | 511,864 | |||||
Accretion of loan origination and other fees | (1,135,001 | ) | (1,960,200 | ) | |||
Accretion of loan discounts | (95,188 | ) | (133,149 | ) | |||
Accretion of discount on SBA-guaranteed debentures payable | 31,899 | 46,222 | |||||
Depreciation expense | 15,592 | 15,169 | |||||
Stock-based compensation | 4,301,118 | 1,642,297 | |||||
Changes in operating assets and liabilities: | |||||||
Interest and fees receivable | (1,891,253 | ) | 203,433 | ||||
Prepaid expenses and other current assets | (886,837 | ) | (176,764 | ) | |||
Accounts payable and accrued liabilities | (5,225,308 | ) | (4,031,030 | ) | |||
Interest payable | (2,156,101 | ) | (1,929,865 | ) | |||
Taxes payable | (735,498 | ) | (2,450,029 | ) | |||
Net cash provided by operating activities | 44,129,329 | 10,668,613 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (33,916 | ) | (21,843 | ) | |||
Net cash used in investing activities | (33,916 | ) | (21,843 | ) | |||
Cash flows from financing activities: | |||||||
Repayments of SBA-guaranteed debentures payable | (7,800,000 | ) | — | ||||
Borrowings under credit facility | 30,000,000 | 8,000,000 | |||||
Repayments of credit facility | (34,000,000 | ) | (48,000,000 | ) | |||
Proceeds from notes | — | 83,565,582 | |||||
Net expenses related to public offering of common stock | — | (54,967 | ) | ||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (3,484,074 | ) | (2,400,352 | ) | |||
Cash dividends/distributions paid | (17,264,143 | ) | (18,752,101 | ) | |||
Net cash provided by (used in) financing activities | (32,548,217 | ) | 22,358,162 | ||||
Net increase in cash and cash equivalents | 11,547,196 | 33,004,932 | |||||
Cash and cash equivalents, beginning of period | 52,615,418 | 78,759,026 | |||||
Cash and cash equivalents, end of period | $ | 64,162,614 | $ | 111,763,958 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 7,932,474 | $ | 7,644,734 | |||
Summary of non-cash financing transactions: | |||||||
Dividends/distributions paid through DRIP share issuances | $ | 844,078 | $ | 830,046 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments March 31, 2016 | ||||||||||||||||
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 | $ | 13,568,000 | $ | 13,568,000 | ||||||||
Class A Units (1,500,000 units) | 1,500,000 | 2,905,000 | ||||||||||||||
13,819,514 | 15,068,000 | 16,473,000 | ||||||||||||||
ADCS Clinics, LLC (3%)* | Operator of Dermatology Clinics | Subordinated Notes (11% Cash, 2% PIK, Due 05/20) | 14,106,030 | 13,844,110 | 13,844,110 | |||||||||||
14,106,030 | 13,844,110 | 13,844,110 | ||||||||||||||
Agilex Flavors & Fragrances, Inc. (3%)* | Custom Fragrance Producer | Subordinated Note (12% Cash, 1.5% PIK, Due 06/19) | 13,139,109 | 12,990,382 | 12,990,382 | |||||||||||
Common Units (1,250 units) | 1,250,000 | 2,585,000 | ||||||||||||||
13,139,109 | 14,240,382 | 15,575,382 | ||||||||||||||
AGM Automotive, LLC (1%)* | Auto Industry Interior Components Supplier | Units (1,500,000 units) | 630,134 | 2,623,000 | ||||||||||||
630,134 | 2,623,000 | |||||||||||||||
All Metals Holding, LLC (1%)* | Steel Processor and Distributor | Subordinated Note (11% Cash, Due 03/21) | 6,033,333 | 5,764,084 | 5,764,084 | |||||||||||
Bridge Note (14% PIK, Due 11/16) | 575,000 | 560,625 | 560,625 | |||||||||||||
Units (83,025 units) | 253,000 | 322,000 | ||||||||||||||
6,608,333 | 6,577,709 | 6,646,709 | ||||||||||||||
Applied-Cleveland Holdings, Inc. (5%)* | Oil and Gas Pipeline Infrastructure Inspection Services | Subordinated Notes (10% Cash, 2% PIK, Due 06/19) | 23,589,606 | 23,352,205 | 23,352,205 | |||||||||||
Class A Units (2,129,032 units) | 2,129,032 | 2,622,000 | ||||||||||||||
23,589,606 | 25,481,237 | 25,974,205 | ||||||||||||||
Audio and Video Labs Holdings, Inc. (2%)* | Manufacturer and Distributor for Independent Artists and Authors | Subordinated Notes (12% Cash, 2% PIK, Due 06/18) | 10,561,242 | 10,460,462 | 10,460,462 | |||||||||||
Common Stock (138 shares) | 1,300,000 | 1,750,000 | ||||||||||||||
10,561,242 | 11,760,462 | 12,210,462 | ||||||||||||||
Avkem International, LLC (1%)* | Flux and Foundry Manufacturer and Supplier | Subordinated Note (10% Cash, 4% PIK, Due 12/17) | 4,085,200 | 4,021,473 | 4,021,473 | |||||||||||
4,085,200 | 4,021,473 | 4,021,473 | ||||||||||||||
Baker Hill Acquisition, LLC (3%)* | Loan Origination Software Solutions Provider | Subordinated Notes (12% Cash, Due 03/21) | 13,500,000 | 13,311,582 | 13,311,582 | |||||||||||
Limited Partner Interest | 1,498,500 | 1,498,500 | ||||||||||||||
13,500,000 | 14,810,082 | 14,810,082 | ||||||||||||||
BFN Operations LLC (0%)* | Wholesale Grower and Distributor of Shrubs, Trees and Plants | First-Out Subordinated Note (17% PIK, Due 02/17)(6) | 16,148,423 | 14,162,530 | 2,162,000 | |||||||||||
Last-Out Subordinated Note (17% PIK, Due 02/17)(6) | 2,199,576 | 1,957,027 | — | |||||||||||||
18,347,999 | 16,119,557 | 2,162,000 | ||||||||||||||
Cafe Enterprises, Inc. (3%)* | Restaurant | Subordinated Note (12% Cash, 2% PIK, Due 09/19) | 12,470,272 | 12,300,160 | 12,300,160 | |||||||||||
Series C Preferred Stock (10,000 shares) | 1,000,000 | 1,190,000 | ||||||||||||||
12,470,272 | 13,300,160 | 13,490,160 | ||||||||||||||
Capital Contractors, Inc. (0%)* | Janitorial and Facilities Maintenance Services | Subordinated Notes (5% Cash, Due 12/16) | 9,843,542 | 9,691,284 | 2,516,000 | |||||||||||
Series A Redeemable Preferred Stock (200 shares) | 2,000,000 | — | ||||||||||||||
Common Stock Warrants (20 shares) | 492,000 | — | ||||||||||||||
9,843,542 | 12,183,284 | 2,516,000 | ||||||||||||||
Captek Softgel International, Inc. (3%)* | Nutraceutical Manufacturer | Subordinated Note (10% Cash, 2.5% PIK, Due 06/21) | 15,116,805 | 14,827,199 | 14,827,199 | |||||||||||
Common Stock (15,000 shares) | 1,500,000 | 1,500,000 | ||||||||||||||
15,116,805 | 16,327,199 | 16,327,199 | ||||||||||||||
Carolina Beverage Group, LLC (0%)* | Beverage Manufacturing and Packaging | Class B Units (11,974 units) | 119,735 | 261,000 | ||||||||||||
119,735 | 261,000 | |||||||||||||||
Centerfield Media Holding Company (4%)* | Digital Marketing | Subordinated Note (10% Cash, 3.5% PIK, Due 03/21) | 18,362,644 | 18,029,462 | 18,029,462 | |||||||||||
Common Shares (1,000 shares) | 1,000,000 | 1,216,000 | ||||||||||||||
18,362,644 | 19,029,462 | 19,245,462 | ||||||||||||||
Chromaflo Technologies Parent LP (2%)* | Colorant Manufacturer and Distributor | Second Lien Term Loan (8.3% Cash, Due 06/20) | 9,999,618 | 9,964,021 | 9,366,000 | |||||||||||
Class A Units (22,561 units) | 906,604 | 2,281,000 | ||||||||||||||
9,999,618 | 10,870,625 | 11,647,000 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2016 | ||||||||||||||||
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) | $ | 15,685,061 | $ | 15,407,588 | $ | 14,568,002 | ||||||||
15,685,061 | 15,407,588 | 14,568,002 | ||||||||||||||
Comverge, Inc. (3%)* | Provider of Intelligent Energy Management Solutions | Senior Note (12% Cash, Due 05/18) | 15,505,583 | 15,363,530 | 15,363,530 | |||||||||||
Preferred Stock (703 shares) | 554,458 | 620,000 | ||||||||||||||
Common Stock (1,000,000 shares) | 100,000 | 375,000 | ||||||||||||||
15,505,583 | 16,017,988 | 16,358,530 | ||||||||||||||
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 | |||||||||||||||
Data Source Holdings, LLC (0%)* | Print Supply Chain Management Services | Common Units (47,503 units) | 1,000,000 | 800,000 | ||||||||||||
1,000,000 | 800,000 | |||||||||||||||
DialogDirect, Inc. (5%)* | Business Process Outsourcing Provider | Subordinated Notes (12% Cash, 1.5% PIK, Due 04/20) | 24,528,436 | 24,339,359 | 24,339,359 | |||||||||||
24,528,436 | 24,339,359 | 24,339,359 | ||||||||||||||
DLC Acquisition, LLC (8%)* | Staffing Firm | Senior Notes (10% Cash, Due 12/20) | 22,575,000 | 22,242,542 | 22,242,542 | |||||||||||
Senior Note (10% Cash, 2% PIK, Due 12/20) | 18,706,162 | 18,456,340 | 18,456,340 | |||||||||||||
41,281,162 | 40,698,882 | 40,698,882 | ||||||||||||||
DLR Restaurants, LLC (0%)* | Restaurant | Royalty Rights | — | — | ||||||||||||
— | — | |||||||||||||||
Dyno Acquiror, Inc. (2%)* | Sewing Products and Seasonal Decorative Products Supplier | Subordinated Note (12% Cash, 2% PIK, Due 11/19) | 7,419,297 | 7,341,823 | 7,341,823 | |||||||||||
Series A Units (600,000 units) | 600,000 | 492,000 | ||||||||||||||
7,419,297 | 7,941,823 | 7,833,823 | ||||||||||||||
Eckler's Holdings, Inc. (2%)* | Restoration Parts and Accessories for Classic Cars and Trucks | Subordinated Note (11% Cash, 4.5% PIK, Due 07/18) | 9,607,507 | 9,526,502 | 8,727,000 | |||||||||||
Common Stock (18,029 shares) | 183,562 | — | ||||||||||||||
Series A Preferred Stock (1,596 shares) | 1,596,126 | — | ||||||||||||||
Series B Preferred Stock (185 shares) | 185,127 | 29,000 | ||||||||||||||
9,607,507 | 11,491,317 | 8,756,000 | ||||||||||||||
FCL Holding SPV, LLC (0%)* | Commercial Printing Services | Class A Interest (24,873 units) | 292,000 | 450,000 | ||||||||||||
Class B Interest (48,427 units) | — | — | ||||||||||||||
Class C Interest (3,746 units) | — | — | ||||||||||||||
292,000 | 450,000 | |||||||||||||||
Flowchem Ltd. (0%)* | Services to Crude Oil Pipeline Operators | Common Units (1,000,000 units) | 782,356 | 2,102,000 | ||||||||||||
782,356 | 2,102,000 | |||||||||||||||
FrontStream Holdings, LLC (3%)* | Payment and Donation Management Product Service Provider | Subordinated Note (13.0% Cash, Due 12/20) | 13,375,000 | 13,237,946 | 13,237,946 | |||||||||||
Series C-2 Preferred Shares (500 shares) | 500,000 | 500,000 | ||||||||||||||
13,375,000 | 13,737,946 | 13,737,946 | ||||||||||||||
Frontstreet Facility Solutions, Inc. (1%)* | Retail, Restaurant and Commercial Facilities Maintenance | Subordinated Note (11% Cash, 2% PIK, Due 07/18) | 8,462,629 | 8,398,394 | 6,745,000 | |||||||||||
Series A Convertible Preferred Stock (2,500 shares) | 250,000 | — | ||||||||||||||
Series B Convertible Preferred Stock (5,556 shares) | 500,000 | — | ||||||||||||||
8,462,629 | 9,148,394 | 6,745,000 | ||||||||||||||
Frozen Specialties, Inc. (3%)* | Frozen Foods Manufacturer | Subordinated Note (10% Cash, 4% PIK, Due 12/17) | 13,265,864 | 13,265,864 | 14,465,864 | |||||||||||
13,265,864 | 13,265,864 | 14,465,864 | ||||||||||||||
Garden Fresh Restaurant Holding, LLC (0%)* | Restaurant | Class A Units (5,000 units) | 500,000 | — | ||||||||||||
500,000 | — | |||||||||||||||
GST AutoLeather, Inc. (4%)* | Supplier of Automotive Interior Leather | Subordinated Note (11% Cash, 2% PIK, Due 01/21) | 22,781,645 | 22,422,544 | 22,422,544 | |||||||||||
22,781,645 | 22,422,544 | 22,422,544 | ||||||||||||||
Hatch Chile Co., LLC (0%)* | Food Products Distributor | Unit Purchase Warrant (7,817 units) | 295,800 | 1,542,000 | ||||||||||||
295,800 | 1,542,000 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2016 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | Principal Amount | Cost | Fair Value(3) | |||||||||||
HKW Capital Partners IV, L.P. (0%)*(4) | Multi-Sector Holdings | 0.6% Limited Partnership Interest | $ | 1,179,047 | $ | 1,316,825 | ||||||||||
1,179,047 | 1,316,825 | |||||||||||||||
HTC Borrower, LLC (5%)* | Hunting and Outdoor Products | Subordinated Notes (10% Cash, 3% PIK, Due 09/20) | $ | 25,541,889 | 25,220,842 | 25,220,842 | ||||||||||
25,541,889 | 25,220,842 | 25,220,842 | ||||||||||||||
ICP Industrial, Inc. (4%)* | Coatings Formulator and Manufacturer | Subordinated Note (9.5% Cash, Due 04/22) | 7,500,000 | 7,429,074 | 7,429,074 | |||||||||||
Subordinated Note (10% Cash, 1% PIK, Due 10/22) | 6,270,781 | 6,186,350 | 6,186,350 | |||||||||||||
Subordinated Note (14% PIK, Due 10/22) | 3,986,894 | 3,951,208 | 3,951,208 | |||||||||||||
Class A Units (1,249 units) | 1,695,080 | 1,695,080 | ||||||||||||||
17,757,675 | 19,261,712 | 19,261,712 | ||||||||||||||
Inland Pipe Rehabilitation Holding Company LLC (2%)* | Cleaning and Repair Services | Subordinated Notes (10% Cash, 5.5% PIK, Due 12/16) | 9,778,555 | 9,760,122 | 9,760,122 | |||||||||||
Membership Interest Purchase Warrant (3%) | 853,500 | 511,000 | ||||||||||||||
9,778,555 | 10,613,622 | 10,271,122 | ||||||||||||||
KT Capital Partners, L.P. (0%)*(4) | Multi-Sector Holdings | Subordinated Notes (10% PIK) | 754,000 | 374,000 | 754,000 | |||||||||||
Subordinated Note (3.3% PIK) | 161,000 | 81,000 | 161,000 | |||||||||||||
4.2% Limited Partnership Interest | 380,000 | 754,000 | ||||||||||||||
915,000 | 835,000 | 1,669,000 | ||||||||||||||
Magpul Industries Corp. (1%)* | Firearm Accessories Manufacturer and Distributor | Preferred Units (1,470 units) | 1,470,000 | 2,720,000 | ||||||||||||
Common Units (30,000 units) | 30,000 | 4,697,000 | ||||||||||||||
1,500,000 | 7,417,000 | |||||||||||||||
Media Storm, LLC (2%)* | Marketing Services | Subordinated Note (10% Cash, Due 08/19) | 6,545,455 | 6,523,237 | 6,523,237 | |||||||||||
Membership Units (1,216,204 units) | 1,176,957 | 1,069,000 | ||||||||||||||
6,545,455 | 7,700,194 | 7,592,237 | ||||||||||||||
Micross Solutions LLC (5%)* | Provider of Semiconductor Products and Services | Subordinated Note (12% Cash, 3% PIK, Due 06/18) | 23,882,166 | 23,748,721 | 23,748,721 | |||||||||||
Class A-2 Common Units (1,979,524 units) | 2,019,693 | 1,423,000 | ||||||||||||||
23,882,166 | 25,768,414 | 25,171,721 | ||||||||||||||
Motor Vehicle Software Corporation (4%)* | Provider of EVR Services | Subordinated Note (10% Cash, 1% PIK, Due 03/21) | 20,116,873 | 19,744,937 | 19,744,937 | |||||||||||
Class A Units (1,000,000 units) | 1,064,960 | 1,064,960 | ||||||||||||||
20,116,873 | 20,809,897 | 20,809,897 | ||||||||||||||
My Alarm Center, LLC (0%)* | Security Company | Preferred Units (2,000,000 units) | 2,000,000 | 1,529,000 | ||||||||||||
2,000,000 | 1,529,000 | |||||||||||||||
Nautic Partners VII, LP (0%)*(4) | Multi-Sector Holdings | 0.4% Limited Partnership Interest | 866,410 | 1,156,000 | ||||||||||||
866,410 | 1,156,000 | |||||||||||||||
Nomacorc, LLC (4%)* | Synthetic Wine Cork Producer | Subordinated Note (10% Cash, 2.3% PIK, Due 07/21) | 20,521,158 | 20,179,543 | 17,128,000 | |||||||||||
Limited Partnership Interest | 2,142,710 | 1,192,000 | ||||||||||||||
20,521,158 | 22,322,253 | 18,320,000 | ||||||||||||||
On Event Services, LLC (5%)* | Equipment Rentals | Subordinated Notes (10% Cash, 2% PIK, Due 06/20) | 21,714,667 | 21,056,932 | 21,056,932 | |||||||||||
Warrant to Purchase Units (8.4%) | 1,902,000 | 3,379,000 | ||||||||||||||
21,714,667 | 22,958,932 | 24,435,932 | ||||||||||||||
Orchid Underwriters Agency, LLC (5%)* | Insurance Underwriter | Term B Note (10% Cash, Due 11/19) | 22,644,852 | 22,281,253 | 22,281,253 | |||||||||||
Class A Preferred Units (15,000 units) | 1,500,000 | 1,791,000 | ||||||||||||||
Class A Common Units (15,000 units) | — | 794,000 | ||||||||||||||
22,644,852 | 23,781,253 | 24,866,253 | ||||||||||||||
Performance Health & Wellness Holdings, Inc. (1%)* | Rehabilitation and Wellness Products | Class A Limited Partnership Units (15,000 units) | 210,076 | 3,533,000 | ||||||||||||
210,076 | 3,533,000 | |||||||||||||||
PowerDirect Marketing, LLC (0%)* | Marketing Services | Subordinated Note (13% Cash, 2% PIK, Due 12/16)(6) | 9,103,408 | 6,627,482 | 2,337,000 | |||||||||||
Common Unit Purchase Warrants | 590,200 | — | ||||||||||||||
9,103,408 | 7,217,682 | 2,337,000 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2016 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Radiant Logistics, Inc. (3%)* | Freight Logistics | Subordinated Note (10.5% Cash, Due 04/21) | $ | 15,000,000 | $ | 14,736,457 | $ | 15,450,000 | ||||||||
15,000,000 | 14,736,457 | 15,450,000 | ||||||||||||||
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) | 6,747,984 | 6,623,535 | 6,623,535 | |||||||||||
Series A Preferred Units (39 units) | 3,654,253 | 2,485,000 | ||||||||||||||
6,747,984 | 10,277,788 | 9,108,535 | ||||||||||||||
SPC Partners V, LP (0%)*(4) | Multi-Sector Holdings | 0.7% Limited Partnership Interest | 1,605,759 | 1,563,000 | ||||||||||||
1,605,759 | 1,563,000 | |||||||||||||||
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) | 16,172,616 | 15,992,051 | 12,994,902 | |||||||||||
Class C Partnership Units (2,000,000 units) | 1,937,421 | 2,570,000 | ||||||||||||||
16,172,616 | 17,929,472 | 15,564,902 | ||||||||||||||
Tate's Bake Shop (2%)* | Producer of Baked Goods | Subordinated Note (10% Cash, 3% PIK, Due 02/20) | 10,495,096 | 10,339,359 | 10,339,359 | |||||||||||
Limited Partner Interest | 925,000 | 1,246,000 | ||||||||||||||
10,495,096 | 11,264,359 | 11,585,359 | ||||||||||||||
TCFI Merlin LLC (3%)* | Specialty Staffing Service Provider | Senior Note (10% Cash, 1% PIK, Due 09/19) | 13,667,228 | 13,442,247 | 13,442,247 | |||||||||||
Limited Partnership Units (500,000 units) | 500,000 | 500,000 | ||||||||||||||
13,667,228 | 13,942,247 | 13,942,247 | ||||||||||||||
The Cook & Boardman Group, LLC (3%)* | Distributor of Doors and Related Products | Subordinated Note (10% Cash, 2.5% PIK, Due 03/20) | 14,560,482 | 14,342,450 | 14,342,450 | |||||||||||
Class A Units (1,400,000 units) | 1,400,000 | 2,081,000 | ||||||||||||||
14,560,482 | 15,742,450 | 16,423,450 | ||||||||||||||
The Krystal Company (1%)* | Restaurant | Class A Units of Limited Partnership (2,000 units) | 638,260 | 3,270,000 | ||||||||||||
638,260 | 3,270,000 | |||||||||||||||
Top Knobs USA, Inc. (1%)* | Hardware Designer and Distributor | Common Stock (26,593 shares) | 333,994 | 2,647,000 | ||||||||||||
333,994 | 2,647,000 | |||||||||||||||
United Biologics, LLC (2%)* | Allergy Immunotherapy | Subordinated Note (12% Cash, 2% PIK, Due 03/17) | 12,690,507 | 12,412,464 | 12,111,000 | |||||||||||
Class A Common Units (177,935 units) | 1,999,989 | 54,000 | ||||||||||||||
Class A-1 Common Units (18,818 units) | 137,324 | 137,000 | ||||||||||||||
Class A-1 Common Kicker Units (14,114 units) | — | — | ||||||||||||||
Class A, Class A-1, Class A-1 Kicker & Class B Unit Purchase Warrants | 838,117 | 61,000 | ||||||||||||||
12,690,507 | 15,387,894 | 12,363,000 | ||||||||||||||
Water Pik, Inc. (7%)* | Oral Health and Shower Head Supplier | Second Lien Term Loan (9.8% Cash, Due 01/21) | 33,288,781 | 32,853,497 | 32,853,497 | |||||||||||
33,288,781 | 32,853,497 | 32,853,497 | ||||||||||||||
Wheel Pros Holdings, Inc. (3%)* | Wheel/Rim and Performance Tire Distributor | Subordinated Note (11% Cash, Due 06/20) | 13,822,500 | 13,568,249 | 13,568,249 | |||||||||||
Class A Units (2,000 units) | 2,000,000 | 1,991,000 | ||||||||||||||
13,822,500 | 15,568,249 | 15,559,249 | ||||||||||||||
Women's Marketing, Inc. (4%)* | Full-Service Media Organization | Subordinated Note (11% Cash, 1.5% PIK, Due 06/21) | 16,371,426 | 16,056,408 | 16,056,408 | |||||||||||
Class A Common Units (16,300 units) | 1,630,000 | 1,630,000 | ||||||||||||||
16,371,426 | 17,686,408 | 17,686,408 | ||||||||||||||
WSO Holdings, LP (0%)* | Organic/Fair Trade Sugar, Syrup, Nectar and Honey Producer | Common Points (3,000 points) | 3,000,000 | 1,747,000 | ||||||||||||
3,000,000 | 1,747,000 | |||||||||||||||
YummyEarth Inc. (4%)* | Organic Candy Manufacturer | Senior Note (9.5% Cash, Due 08/20) | 19,500,000 | 18,994,653 | 18,994,653 | |||||||||||
Limited Partner Interest | 3,496,500 | 2,242,000 | ||||||||||||||
19,500,000 | 22,491,153 | 21,236,653 | ||||||||||||||