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 March 31, 2016

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 May 4, 2016 was 33,576,436.

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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 March 31, 2016 and Consolidated Balance Sheet as of December 31, 2015	3
	Unaudited Consolidated Statements of Operations for the Three Months Ended March 31, 2016 and 2015	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Three Months Ended March 31, 2016 and 2015	5
	Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2016 and 2015	6
	Unaudited Consolidated Schedule of Investments as of March 31, 2016	7
	Consolidated Schedule of Investments as of December 31, 2015	13
	Notes to Unaudited Consolidated Financial Statements	20
	Unaudited Schedule of Investments in and Advances to Affiliates for the Three Months Ended March 31, 2016	36
	Schedule of Investments in and Advances to Affiliates for the Year Ended December 31, 2015	39
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	43
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	55
Item 4.	Controls and Procedures	56
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	57
Item 1A.	Risk Factors	57
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	57
Item 3.	Defaults Upon Senior Securities	57
Item 4.	Mine Safety Disclosures	57
Item 5.	Other Information	57
Item 6.	Exhibits	58
Signatures		59
Exhibits

2

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

TRIANGLE CAPITAL CORPORATION

Consolidated Balance Sheets

	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

See accompanying notes.

3

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Operations

	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

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, 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

See accompanying notes.

5

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows 

	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

See accompanying notes.

6

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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

7

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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

8

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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

9

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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