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 June 30, 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 August 3, 2016 was 39,880,195.

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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 June 30, 2016 and Consolidated Balance Sheet as of December 31, 2015	3
	Unaudited Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2016 and 2015	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Six Months Ended June 30, 2016 and 2015	5
	Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2016 and 2015	6
	Unaudited Consolidated Schedule of Investments as of June 30, 2016	7
	Consolidated Schedule of Investments as of December 31, 2015	14
	Notes to Unaudited Consolidated Financial Statements	21
	Unaudited Schedule of Investments in and Advances to Affiliates for the Six Months Ended June 30, 2016	37
	Schedule of Investments in and Advances to Affiliates for the Year Ended December 31, 2015	40
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	44
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	58
Item 4.	Controls and Procedures	58
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	60
Item 4.	Mine Safety Disclosures	60
Item 5.	Other Information	60
Item 6.	Exhibits	61
Signatures		62
Exhibits

2

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

TRIANGLE CAPITAL CORPORATION

Consolidated Balance Sheets

	June 30, 2016				December 31, 2015
	(Unaudited)
Assets:
Investments at fair value:
Non-Control / Non-Affiliate investments (cost of $750,833,116 and $795,244,907 as of June 30, 2016 and December 31, 2015, respectively)	$	717,643,399			$	774,238,518
Affiliate investments (cost of $175,702,230 and $171,486,103 as of June 30, 2016 and December 31, 2015, respectively)	183,475,354				177,581,965
Control investments (cost of $44,418,113 and $40,618,113 as of June 30, 2016 and December 31, 2015, respectively)	29,704,233				25,456,233
Total investments at fair value	930,822,986				977,276,716
Cash and cash equivalents	124,929,733				52,615,418
Interest, fees and other receivables	9,425,610				4,892,146
Prepaid expenses and other current assets	1,903,714				947,068
Deferred financing fees	3,093,052				3,480,444
Property and equipment, net	119,520				105,698
Total assets	$	1,070,294,615			$	1,039,317,490
Liabilities:
Accounts payable and accrued liabilities	$	3,374,178			$	7,463,514
Interest payable	3,841,477				3,714,470
Taxes payable	—				735,498
Deferred income taxes	5,375,894				4,988,317
Borrowings under credit facility	152,070,309				131,256,669
Notes	162,444,085				162,142,478
SBA-guaranteed debentures payable	244,938,000				220,648,789
Total liabilities	572,043,943				530,949,735
Commitments and contingencies (Note 7)
Net Assets:
Common stock, $0.001 par value per share (150,000,000 shares authorized, 33,630,195 and 33,375,126 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively)	33,630				33,375
Additional paid-in capital	553,234,755				549,242,439
Investment income in excess of distributions	8,851,309				16,127,141
Accumulated realized losses	(21,289,719		)		(25,813,329		)
Net unrealized depreciation	(42,579,303		)		(31,221,871		)
Total net assets	498,250,672				508,367,755
Total liabilities and net assets	$	1,070,294,615			$	1,039,317,490
Net asset value per share	$	14.82			$	15.23

See accompanying notes.

3

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Operations

	Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
	June 30, 2016				June 30, 2015				June 30, 2016				June 30, 2015
Investment income:
Interest income:
Non-Control / Non-Affiliate investments	$	17,486,022			$	16,982,885			$	35,668,676			$	33,941,585
Affiliate investments	3,356,738				4,199,380				6,741,107				8,390,729
Control investments	267,298				49,481				460,914				49,481
Total interest income	21,110,058				21,231,746				42,870,697				42,381,795
Dividend income:
Non-Control / Non-Affiliate investments	48,589				45,689				(1,198,171		)		1,634,394
Affiliate investments	302,207				281,369				462,262				537,622
Control investments	300,000				—				300,000				—
Total dividend income	650,796				327,058				(435,909		)		2,172,016
Fee and other income:
Non-Control / Non-Affiliate investments	2,452,792				835,092				4,076,678				4,072,438
Affiliate investments	226,551				1,500,096				536,566				1,997,053
Control investments	100,000				100,000				200,000				200,000
Total fee and other income	2,779,343				2,435,188				4,813,244				6,269,491
Payment-in-kind interest income:
Non-Control / Non-Affiliate investments	2,731,689				2,613,528				5,653,293				5,341,851
Affiliate investments	1,094,522				1,150,008				2,083,735				2,319,009
Total payment-in-kind interest income	3,826,211				3,763,536				7,737,028				7,660,860
Interest income from cash and cash equivalents	55,452				67,376				92,670				120,312
Total investment income	28,421,860				27,824,904				55,077,730				58,604,474
Operating expenses:
Interest and other financing fees	6,764,654				7,325,340				13,283,224				13,757,795
Compensation expenses	4,096,472				3,516,492				13,546,965				8,925,115
General and administrative expenses	1,221,821				816,887				2,310,545				1,985,800
Total operating expenses	12,082,947				11,658,719				29,140,734				24,668,710
Net investment income	16,338,913				16,166,185				25,936,996				33,935,764
Realized and unrealized gains (losses) on investments and foreign currency borrowings:
Net realized gains (losses):
Non-Control / Non-Affiliate investments	5,621,127				3,178,433				6,205,914				6,415,102
Affiliate investments	(1,683,731		)		238,806				(1,682,304		)		266,508
Control investments	—				(20,483,644		)		—				(20,483,644		)
Net realized gains (losses)	3,937,396				(17,066,405		)		4,523,610				(13,802,034		)
Net unrealized appreciation (depreciation):
Investments	(13,529,964		)		14,782,147				(10,445,641		)		1,066,307
Foreign currency borrowings	(59,268		)		(312,322		)		(911,791		)		861,385
Net unrealized appreciation (depreciation)	(13,589,232		)		14,469,825				(11,357,432		)		1,927,692
Net realized and unrealized losses on investments and foreign currency borrowings	(9,651,836		)		(2,596,580		)		(6,833,822		)		(11,874,342		)
Loss on extinguishment of debt	—				(1,394,017		)		—				(1,394,017		)
Benefit (provision) for taxes	(250		)		—				10,911				(137,875		)
Net increase in net assets resulting from operations	$	6,686,827			$	12,175,588			$	19,114,085			$	20,529,530
Net investment income per share—basic and diluted	$	0.49			$	0.49			$	0.77			$	1.02
Net increase in net assets resulting from operations per share—basic and diluted	$	0.20			$	0.37			$	0.57			$	0.62
Dividends/distributions per share:
Regular quarterly dividends/distributions	$	0.45			$	0.54			$	0.99			$	1.08
Supplemental dividends/distributions	—				0.05				—				0.10
Total dividends/distributions per share	$	0.45			$	0.59			$	0.99			$	1.18
Weighted average shares outstanding—basic and diluted	33,584,466				33,234,532				33,532,406				33,166,865

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 (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	—			—				—				33,935,764				—				—				33,935,764
Stock-based compensation	—			—				3,412,181				—				—				—				3,412,181
Realized gain (loss) on investments	—			—				—				—				(13,802,034		)		14,380,376				578,342
Net unrealized loss on investments / foreign currency	—			—				—				—				—				(12,452,684		)		(12,452,684		)
Loss on extinguishment of debt	—			—				—				(1,394,017		)		—				—				(1,394,017		)
Provision for taxes	—			—				—				(137,875		)		—				—				(137,875		)
Dividends / distributions	71,248			71				1,695,352				(39,191,663		)		—				—				(37,496,240		)
Expenses related to public offering of common stock	—			—				(54,967		)		—				—				—				(54,967		)
Issuance of restricted stock	360,840			361				(361		)		—				—				—				—
Common stock withheld for payroll taxes upon vesting of restricted stock	(110,209	)		(110		)		(2,400,242		)		—				—				—				(2,400,352		)
Balance, June 30, 2015	33,272,167			$	33,272			$	544,771,957			$	6,138,723			$	(1,337,335	)		$	(34,789,836	)		$	514,816,781

 

	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	—			—				—				25,936,996				—				—				25,936,996
Stock-based compensation	—			—				5,886,490				—				—				—				5,886,490
Realized gain (loss) on investments	—			—				—				—				4,523,610				(4,650,931		)		(127,321		)
Net unrealized loss on investments / foreign currency	—			—				—				—				—				(6,706,501		)		(6,706,501		)
Tax benefit	—			—				—				10,911				—				—				10,911
Dividends / distributions	82,848			82				1,590,073				(33,223,739		)		—				—				(31,633,584		)
Issuance of restricted stock	364,605			365				(365		)		—				—				—				—
Common stock withheld for payroll taxes upon vesting of restricted stock	(192,384	)		(192		)		(3,483,882		)		—				—				—				(3,484,074		)
Balance, June 30, 2016	33,630,195			$	33,630			$	553,234,755			$	8,851,309			$	(21,289,719	)		$	(42,579,303	)		$	498,250,672

See accompanying notes.

5

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows 

	Six Months Ended				Six Months Ended
	June 30, 2016				June 30, 2015
Cash flows from operating activities:
Net increase in net assets resulting from operations	$	19,114,085			$	20,529,530
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Purchases of portfolio investments	(75,444,437		)		(163,270,565		)
Repayments received/sales of portfolio investments	119,484,196				154,211,535
Loan origination and other fees received	1,622,991				2,819,164
Net realized loss (gain) on investments	(4,523,610		)		13,802,034
Net unrealized depreciation (appreciation) on investments	10,058,066				(1,820,140		)
Net unrealized depreciation (appreciation) on foreign currency borrowings	911,791				(861,385		)
Deferred income taxes	387,577				753,833
Payment-in-kind interest accrued, net of payments received	(1,993,156		)		23,501
Amortization of deferred financing fees	1,069,711				1,107,207
Loss on extinguishment of debt	—				1,394,017
Accretion of loan origination and other fees	(2,550,623		)		(3,202,668		)
Accretion of loan discounts	(199,697		)		(238,229		)
Accretion of discount on SBA-guaranteed debentures payable	31,899				92,784
Depreciation expense	33,432				29,225
Stock-based compensation	5,886,490				3,412,181
Changes in operating assets and liabilities:
Interest, fees and other receivables	(4,533,464		)		574,544
Prepaid expenses and other current assets	(956,646		)		(207,411		)
Accounts payable and accrued liabilities	(4,089,336		)		(3,726,899		)
Interest payable	127,007				212,193
Taxes payable	(735,498		)		(2,451,879		)
Payable from unsettled transaction	—				16,961,500
Net cash provided by operating activities	63,700,778				40,144,072
Cash flows from investing activities:
Purchases of property and equipment	(47,254		)		(37,091		)
Net cash used in investing activities	(47,254		)		(37,091		)
Cash flows from financing activities:
Borrowings under SBA-guaranteed debentures payable	32,800,000				—
Repayments of SBA-guaranteed debentures payable	(7,800,000		)		—
Borrowings under credit facility	68,901,849				83,000,000
Repayments of credit facility	(49,000,000		)		(56,000,000		)
Proceeds from notes	—				83,372,640
Redemption of notes	—				(69,000,000		)
Financing fees paid	(1,123,400		)		(2,740,049		)
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	(31,633,584		)		(37,496,240		)
Net cash provided by (used in) financing activities	8,660,791				(1,318,968		)
Net increase in cash and cash equivalents	72,314,315				38,788,013
Cash and cash equivalents, beginning of period	52,615,418				78,759,026
Cash and cash equivalents, end of period	$	124,929,733			$	117,547,039
Supplemental disclosure of cash flow information:
Cash paid for interest	$	11,625,782			$	11,673,774
Summary of non-cash financing transactions:
Dividends/distributions paid through DRIP share issuances	$	1,590,155			$	1,695,423

See accompanying notes.

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 2016
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
Non–Control / Non–Affiliate Investments:
ACA Holdings LLC. (F/K/A My Alarm Center, LLC) (0%)*		Security Company		Preferred Units (2,000,000 units)						$	2,000,000			$	1,458,000
										2,000,000				1,458,000
Access Medical Acquisition, Inc. (3%)*		Operator of Primary Care Clinics		Subordinated Notes (10% Cash, 2% PIK, Due 01/22)		$	13,819,514			13,576,223				13,576,223
				Class A Units (1,500,000 units)						1,500,000				4,228,000
						13,819,514				15,076,223				17,804,223
Agilex Flavors & Fragrances, Inc. (3%)*		Custom Fragrance Producer		Subordinated Note (12% Cash, Due 11/21)		13,168,124				13,040,499				13,040,499
				Common Units (1,250 units)						1,250,000				2,641,000
						13,168,124				14,290,499				15,681,499
AGM Automotive, LLC (1%)*		Auto Industry Interior Components Supplier		Units (1,500,000 units)						630,134				4,076,000
										630,134				4,076,000
All Metals Holding, LLC (1%)*		Steel Processor and Distributor		Subordinated Note (11% Cash, Due 03/21)		6,033,333				5,777,954				5,777,954
				Bridge Note (14% PIK, Due 11/16)		595,589				585,876				706,000
				Units (83,025 units)						253,000				330,000
						6,628,922				6,616,830				6,813,954
Applied-Cleveland Holdings, Inc. (5%)*		Oil and Gas Pipeline Infrastructure Inspection Services		Subordinated Notes (10% Cash, 2% PIK, Due 06/19)		23,709,065				23,489,516				23,489,516
				Class A Units (2,129,032 units)						2,129,032				2,685,000
						23,709,065				25,618,548				26,174,516
Avkem International, LLC (1%)*		Flux and Foundry Manufacturer and Supplier		Subordinated Note (10% Cash, 4% PIK, Due 12/17)		4,112,935				4,057,651				4,057,651
						4,112,935				4,057,651				4,057,651
AVL Holdings, Inc. (0%)*		Manufacturer and Distributor for Independent Artists and Authors		Common Stock (138 shares)						1,300,000				1,846,000
										1,300,000				1,846,000
Baker Hill Acquisition, LLC (3%)*		Loan Origination Software Solutions Provider		Subordinated Notes (12% Cash, Due 03/21)		13,500,000				13,318,928				13,318,928
				Limited Partnership Interest						1,498,500				1,498,500
						13,500,000				14,817,428				14,817,428
BFN Operations LLC (0%)*		Wholesale Grower and Distributor of Shrubs, Trees and Plants		First-Out Subordinated Note (17% PIK, Due 02/17)(6)		16,852,343				14,162,530				—
				Last-Out Subordinated Note (17% PIK, Due 02/17)(6)		2,295,457				1,957,027				—
						19,147,800				16,119,557				—
Cafe Enterprises, Inc. (2%)*		Restaurant		Subordinated Note (12% Cash, 2% PIK, Due 09/19)		12,533,422				12,373,266				10,003,000
				Series C Preferred Stock (10,000 shares)						1,000,000				415,000
						12,533,422				13,373,266				10,418,000
Capital Contractors, Inc. (0%)*		Janitorial and Facilities Maintenance Services		Subordinated Notes (5% Cash, Due 6/20)		9,843,542				9,697,991				2,099,000
				Series A Redeemable Preferred Stock (200 shares)						2,000,000				—
				Common Stock Warrants (20 shares)						492,000				—
						9,843,542				12,189,991				2,099,000
Captek Softgel International, Inc. (3%)*		Nutraceutical Manufacturer		Subordinated Note (10% Cash, 2.5% PIK, Due 06/21)		15,212,335				14,933,383				14,933,383
				Common Stock (15,000 shares)						1,500,000				1,500,000
						15,212,335				16,433,383				16,433,383
Carolina Beverage Group, LLC (0%)*		Beverage Manufacturing and Packaging		Class B Units (11,974 units)						119,735				341,000
										119,735				341,000
Centerfield Media Holding Company (4%)*		Digital Marketing		Subordinated Note (10% Cash, 3.5% PIK, Due 03/21)		18,525,102				18,205,834				18,205,834
				Common Shares (1,000 shares)						1,000,000				1,653,000
						18,525,102				19,205,834				19,858,834

7

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) June 30, 2016
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
Chromaflo Technologies Parent LP (2%)*		Colorant Manufacturer and Distributor		Second Lien Term Loan (8.3% Cash, Due 06/20)		$	9,999,618			$	9,965,791			$	9,397,000
				Class A Units (22,561 units)						906,604				2,498,000
						9,999,618				10,872,395				11,895,000
Community Intervention Services, Inc. (2%)*		Provider of Behavioral Health Services		Subordinated Note (10% Cash, 3% PIK, Due 01/21) (6)		16,200,490				15,407,588				11,698,000
						16,200,490				15,407,588				11,698,000
Comverge, Inc. (3%)*		Provider of Intelligent Energy Management Solutions		Senior Note (12% Cash, Due 05/18)		15,505,583				15,377,513				15,377,513
				Preferred Stock (703 shares)						554,458				802,000
				Common Stock (1,000,000 shares)						100,000				191,000
						15,505,583				16,031,971				16,370,513
CPower Ultimate HoldCo, LLC (0%)*		Demand Response Business		Units (345,542 units)						345,542				345,542
										345,542				345,542
CWS Holding Company, LLC (0%)*		Manufacturer of Custom Windows and Sliding Doors		Class A Units (1,500,000 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				898,000
										1,000,000				898,000
DialogDirect, Inc. (3%)*		Business Process Outsourcing Provider		Subordinated Notes (12% Cash, 1.5% PIK, Due 04/20)		16,003,455				15,884,115				15,884,115
						16,003,455				15,884,115				15,884,115
DLC Acquisition, LLC (8%)*		Staffing Firm		Senior Notes (10% Cash, Due 12/20)		21,575,000				21,264,500				21,264,500
				Senior Note (10% Cash, 2% PIK, Due 12/20)		18,800,732				18,561,343				18,561,343
						40,375,732				39,825,843				39,825,843
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)		7,456,455				7,385,739				7,385,739
				Series A Units (600,000 units)						600,000				444,000
						7,456,455				7,985,739				7,829,739
Eckler's Holdings, Inc. (2%)*		Restoration Parts and Accessories for Classic Cars and Trucks		Subordinated Note (11% Cash, 4.5% PIK, Due 07/18)		9,716,792				9,642,935				8,777,000
				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				—
						9,716,792				11,607,750				8,777,000
Flowchem Holdings LLC (0%)*		Services to Crude Oil Pipeline Operators		Common Units (1,000,000 units)						782,356				2,157,000
										782,356				2,157,000
FrontStream Holdings, LLC (3%)*		Payment and Donation Management Product Service Provider		Subordinated Note (12.5% Cash, Due 12/20)		13,375,000				13,243,338				13,243,338
				Series C-2 Preferred Shares (500 shares)						500,000				500,000
						13,375,000				13,743,338				13,743,338
Frontstreet Facility Solutions, Inc. (1%)*		Retail, Restaurant and Commercial Facilities Maintenance		Subordinated Note (11% Cash, 2% PIK, Due 07/18)		8,462,629				8,404,886				5,020,000
				Series A Convertible Preferred Stock (2,500 shares)						250,000				—
				Series B Convertible Preferred Stock (5,556 shares)						500,000				—
						8,462,629				9,154,886				5,020,000
Frozen Specialties, Inc. (3%)*		Frozen Foods Manufacturer		Subordinated Note (10% Cash, 4% PIK, Due 12/17)		13,399,997				13,399,997				14,599,997
						13,399,997				13,399,997				14,599,997
Garden Fresh Restaurant Holding, LLC (0%)*		Restaurant		Class A Units (5,000 units)						500,000				—
										500,000				—
GST AutoLeather, Inc. (5%)*		Supplier of Automotive Interior Leather		Subordinated Note (11% Cash, 2% PIK, Due 01/21)		22,896,819				22,550,581				22,550,581
						22,896,819				22,550,581				22,550,581

8

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) June 30, 2016
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
Halo Branded Solutions, Inc. (3%)*		Supply Chain Services		Subordinated Notes (11% Cash, 1% PIK, Due 10/22)		$	10,357,392			$	10,124,611			$	10,124,611
				Class A1 Units (2,600 units)						2,600,000				2,600,000
						10,357,392				12,724,611				12,724,611
Hatch Chile Co., LLC (0%)*		Food Products Distributor		Unit Purchase Warrant (7,817 units)						295,800				1,586,000
										295,800				1,586,000
HKW Capital Partners IV, L.P. (0%)*(4)		Multi-Sector Holdings		0.6% Limited Partnership Interest						1,300,300				1,436,000
										1,300,300				1,436,000
HTC Borrower, LLC (5%)*		Hunting and Outdoor Products		Subordinated Notes (10% Cash, 3% PIK, Due 09/20)		25,735,582				25,428,876				25,428,876
						25,735,582				25,428,876				25,428,876
ICP Industrial, Inc. (4%)*		Coatings Formulator and Manufacturer		Subordinated Note (9.5% Cash, Due 04/22)		7,500,000				7,431,184				7,431,184
				Subordinated Notes (10% Cash, 1% PIK, Due 10/22)		8,047,164				7,896,646				7,896,646
				Subordinated Notes (14% PIK, Due 10/22)		5,355,263				5,297,289				5,297,289
				Class A Units (1,289 units)						1,751,483				1,751,483
						20,902,427				22,376,602				22,376,602
Inland Pipe Rehabilitation Holding Company LLC (0%)*		Cleaning and Repair Services		Membership Interest Purchase Warrant (3%)						853,500				1,271,000
										853,500				1,271,000
K-Square Restaurant Partners, LP (F/K/A The Krystal Company) (1%)*		Restaurant		Class A Units of Limited Partnership (2,000 units)						638,260				3,563,000
										638,260				3,563,000
KT Capital Partners, L.P. (0%)*(4)		Multi-Sector Holdings		Subordinated Notes (10% PIK)		769,000				374,000				769,000
				Subordinated Note (3.3% PIK)		162,000				81,000				162,000
				4.2% Limited Partnership Interest						380,000				739,000
						931,000				835,000				1,670,000
Media Storm, LLC (2%)*		Marketing Services		Subordinated Note (10% Cash, Due 08/19)		6,545,455				6,526,715				6,526,715
				Membership Units (1,216,204 units)						1,176,957				1,096,000
						6,545,455				7,703,672				7,622,715
MIC Holding LLC (F/K/A Magpul Industries Corp.) (2%)*		Firearm Accessories Manufacturer and Distributor		Preferred Units (1,470 units)						1,470,000				2,813,000
				Common Units (30,000 units)						30,000				7,053,000
										1,500,000				9,866,000
Micross Solutions LLC (5%)*		Provider of Semiconductor Products and Services		Subordinated Note (12% Cash, 3% PIK, Due 06/18)		24,063,731				23,943,422				23,943,422
				Class A-2 Common Units (1,979,524 units)						2,019,693				1,201,000
						24,063,731				25,963,115				25,144,422
Motor Vehicle Software Corporation (4%)*		Provider of EVR Services		Subordinated Note (10% Cash, 0.5% PIK, Due 03/21)		20,142,299				19,784,923				19,784,923
				Class A Units (1,000,000 units)						1,064,960				1,247,000
						20,142,299				20,849,883				21,031,923
Nautic Partners VII, LP (0%)*(4)		Multi-Sector Holdings		0.4% Limited Partnership Interest						904,146				1,382,000
										904,146				1,382,000
Nomacorc, LLC (4%)*		Synthetic Wine Cork Producer		Subordinated Note (10% Cash, 2.3% PIK, Due 07/21)		20,637,872				20,308,824				17,335,000
				Limited Partnership Interest						2,148,000				1,244,000
						20,637,872				22,456,824				18,579,000
On Event Services, LLC (5%)*		Equipment Rentals		Subordinated Notes (10% Cash, 2% PIK, Due 06/20)		21,824,632				21,205,878				21,205,878
				Warrant to Purchase Units (8.4%)						1,902,000				3,663,000
						21,824,632				23,107,878				24,868,878
Orchid Underwriters Agency, LLC (5%)*		Insurance Underwriter		Term B Note (10% Cash, Due 11/19)		22,644,852				22,303,193				22,303,193
				Class A Preferred Units (15,000 units)						1,500,000				1,849,000
				Class A Common Units (15,000 units)						—				894,000
						22,644,852				23,803,193				25,046,193

9

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) June 30, 2016
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
PHW Equity Investors, L.P. (F/K/A Performance Health & Wellness Holdings, Inc.) (0%)*		Rehabilitation and Wellness Products		Class A Limited Partnership Units (15,000 units)						$	—			$	50,000
										—				50,000
PowerDirect Marketing, LLC (0%)*		Marketing Services		Subordinated Note (13% Cash, 2% PIK, Due 12/16)(6)		$	8,744,209			5,927,482				1,700,000
				Common Unit Purchase Warrants						590,200				—
						8,744,209				6,517,682				1,700,000
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)		6,799,286				6,679,029				6,679,029
				Series A Preferred Units (39 units)						3,654,253				2,379,000
						6,799,286				10,333,282				9,058,029
SPC Partners V, LP (0%)*(4)		Multi-Sector Holdings		0.7% Limited Partnership Interest						1,629,866				1,661,000
										1,629,866				1,661,000
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)		16,239,634				16,071,055				13,084,739
				Class C Partnership Units (2,000,000 units)						1,937,421				2,451,000
						16,239,634				18,008,476				15,535,739
Tate's Bake Shop (2%)*		Producer of Baked Goods		Subordinated Note (10% Cash, 3% PIK, Due 02/20)		10,574,684				10,426,983				10,426,983
				Limited Partnership Interest						925,000				1,167,000
						10,574,684				11,351,983				11,593,983
TCFI Merlin LLC (3%)*		Specialty Staffing Service Provider		Senior Note (10% Cash, 1% PIK, Due 09/19)		13,701,805				13,490,444				13,490,444
				Limited Partnership Units (500,000 units)						500,000				500,000
						13,701,805				13,990,444				13,990,444
The Cook & Boardman Group, LLC (3%)*		Distributor of Doors and Related Products		Subordinated Note (10% Cash, 2.5% PIK, Due 03/20)		14,652,496				14,445,714				14,445,714
				Class A Units (1,400,000 units)						1,400,000				2,382,000
						14,652,496				15,845,714				16,827,714
TK USA Enterprises, Inc. (2%)*		Hardware Designer and Distributor		Subordinated Note (11% Cash, Due 10/23)		12,500,000				12,255,694				12,255,694
						12,500,000				12,255,694				12,255,694
Travelpro Products, Inc. ("Travelpro") and TP - Holiday Group Limited ("TP") (4%)*		Luggage and Travel Bag Supplier		Second Lien Term Note - Travelpro (11% Cash, 2% PIK Due 11/22)		10,023,333				9,804,372				9,804,372
				Second Lien Term Note - TP (11% Cash, 2% PIK, Due 11/22)(4)		8,881,733				8,684,668				8,773,464
				Common Units - Travelpro (2,000,000 units)