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. | ||
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 |
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 |
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 |
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 |
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 | ||||||||||||||
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 | ||||||||||||||
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 | ||||||||||||||
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) |