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. | ||
September 30, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Investments at fair value: | |||||||
Non-Control / Non-Affiliate investments (cost of $771,052,767 and $795,244,907 as of September 30, 2016 and December 31, 2015, respectively) | $ | 748,363,034 | $ | 774,238,518 | |||
Affiliate investments (cost of $163,759,331 and $171,486,103 as of September 30, 2016 and December 31, 2015, respectively) | 170,111,172 | 177,581,965 | |||||
Control investments (cost of $52,518,113 and $40,618,113 as of September 30, 2016 and December 31, 2015, respectively) | 29,257,769 | 25,456,233 | |||||
Total investments at fair value | 947,731,975 | 977,276,716 | |||||
Cash and cash equivalents | 168,336,823 | 52,615,418 | |||||
Interest, fees and other receivables | 6,966,478 | 4,892,146 | |||||
Prepaid expenses and other current assets | 1,690,182 | 947,068 | |||||
Deferred financing fees | 2,897,224 | 3,480,444 | |||||
Property and equipment, net | 122,506 | 105,698 | |||||
Total assets | $ | 1,127,745,188 | $ | 1,039,317,490 | |||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 4,636,217 | $ | 7,463,514 | |||
Interest payable | 1,537,490 | 3,714,470 | |||||
Taxes payable | — | 735,498 | |||||
Deferred income taxes | 3,027,000 | 4,988,317 | |||||
Borrowings under credit facility | 91,427,900 | 131,256,669 | |||||
Notes | 162,598,503 | 162,142,478 | |||||
SBA-guaranteed debentures payable | 245,162,869 | 220,648,789 | |||||
Total liabilities | 508,389,979 | 530,949,735 | |||||
Commitments and contingencies (Note 7) | |||||||
Net Assets: | |||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 40,405,403 and 33,375,126 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively) | 40,405 | 33,375 | |||||
Additional paid-in capital | 684,618,304 | 549,242,439 | |||||
Investment income in excess of distributions | 6,553,437 | 16,127,141 | |||||
Accumulated realized losses | (32,501,174 | ) | (25,813,329 | ) | |||
Net unrealized depreciation | (39,355,763 | ) | (31,221,871 | ) | |||
Total net assets | 619,355,209 | 508,367,755 | |||||
Total liabilities and net assets | $ | 1,127,745,188 | $ | 1,039,317,490 | |||
Net asset value per share | $ | 15.33 | $ | 15.23 |
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||
Investment income: | |||||||||||||||
Interest income: | |||||||||||||||
Non-Control / Non-Affiliate investments | $ | 17,270,300 | $ | 18,051,486 | $ | 52,938,976 | $ | 51,993,071 | |||||||
Affiliate investments | 3,380,867 | 4,294,512 | 10,121,974 | 12,685,241 | |||||||||||
Control investments | 303,708 | 248,609 | 764,622 | 298,090 | |||||||||||
Total interest income | 20,954,875 | 22,594,607 | 63,825,572 | 64,976,402 | |||||||||||
Dividend income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 167,468 | 259,431 | (1,030,703 | ) | 1,893,825 | ||||||||||
Affiliate investments | 244,233 | 323,291 | 706,495 | 860,913 | |||||||||||
Control investments | — | — | 300,000 | — | |||||||||||
Total dividend income | 411,701 | 582,722 | (24,208 | ) | 2,754,738 | ||||||||||
Fee and other income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 1,585,403 | 3,308,427 | 5,662,081 | 7,380,865 | |||||||||||
Affiliate investments | 319,289 | 337,343 | 855,855 | 2,334,396 | |||||||||||
Control investments | 110,000 | 100,000 | 310,000 | 300,000 | |||||||||||
Total fee and other income | 2,014,692 | 3,745,770 | 6,827,936 | 10,015,261 | |||||||||||
Payment-in-kind interest income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 2,719,831 | 2,735,701 | 8,373,124 | 8,077,552 | |||||||||||
Affiliate investments | 1,175,899 | 1,126,244 | 3,259,634 | 3,445,253 | |||||||||||
Total payment-in-kind interest income | 3,895,730 | 3,861,945 | 11,632,758 | 11,522,805 | |||||||||||
Interest income from cash and cash equivalents | 135,459 | 58,401 | 228,129 | 178,713 | |||||||||||
Total investment income | 27,412,457 | 30,843,445 | 82,490,187 | 89,447,919 | |||||||||||
Operating expenses: | |||||||||||||||
Interest and other financing fees | 6,757,718 | 6,561,298 | 20,040,942 | 20,319,093 | |||||||||||
Compensation expenses | 3,963,797 | 4,951,026 | 17,510,762 | 13,876,141 | |||||||||||
General and administrative expenses | 859,785 | 813,125 | 3,170,330 | 2,798,925 | |||||||||||
Total operating expenses | 11,581,300 | 12,325,449 | 40,722,034 | 36,994,159 | |||||||||||
Net investment income | 15,831,157 | 18,517,996 | 41,768,153 | 52,453,760 | |||||||||||
Realized and unrealized gains (losses) on investments and foreign currency borrowings: | |||||||||||||||
Net realized gains (losses): | |||||||||||||||
Non-Control / Non-Affiliate investments | (11,213,561 | ) | 2,331,742 | (5,007,647 | ) | 8,746,844 | |||||||||
Affiliate investments | 2,106 | (503,907 | ) | (1,680,198 | ) | (237,399 | ) | ||||||||
Control investments | — | (18,323,508 | ) | — | (38,807,152 | ) | |||||||||
Net realized gains (losses) | (11,211,455 | ) | (16,495,673 | ) | (6,687,845 | ) | (30,297,707 | ) | |||||||
Net unrealized appreciation (depreciation): | |||||||||||||||
Investments | 2,881,131 | 14,375,221 | (7,564,510 | ) | 15,441,528 | ||||||||||
Foreign currency borrowings | 342,409 | 1,081,391 | (569,382 | ) | 1,942,776 | ||||||||||
Net unrealized appreciation (depreciation) | 3,223,540 | 15,456,612 | (8,133,892 | ) | 17,384,304 | ||||||||||
Net realized and unrealized losses on investments and foreign currency borrowings | (7,987,915 | ) | (1,039,061 | ) | (14,821,737 | ) | (12,913,403 | ) | |||||||
Loss on extinguishment of debt | — | — | — | (1,394,017 | ) | ||||||||||
Tax benefit | 36,431 | 393,437 | 47,342 | 255,562 | |||||||||||
Net increase in net assets resulting from operations | $ | 7,879,673 | $ | 17,872,372 | $ | 26,993,758 | $ | 38,401,902 | |||||||
Net investment income per share—basic and diluted | $ | 0.42 | $ | 0.56 | $ | 1.19 | $ | 1.58 | |||||||
Net increase in net assets resulting from operations per share—basic and diluted | $ | 0.21 | $ | 0.54 | $ | 0.77 | $ | 1.16 | |||||||
Dividends/distributions per share: | |||||||||||||||
Regular quarterly dividends/distributions | $ | 0.45 | $ | 0.54 | $ | 1.44 | $ | 1.62 | |||||||
Supplemental dividends/distributions | — | 0.05 | — | 0.15 | |||||||||||
Total dividends/distributions per share | $ | 0.45 | $ | 0.59 | $ | 1.44 | $ | 1.77 | |||||||
Weighted average shares outstanding—basic and diluted | 38,115,449 | 33,274,586 | 35,199,704 | 33,203,414 |
Common Stock | Additional Paid-In Capital | Investment Income in Excess of Distributions | Accumulated Realized Gains (Losses) on Investments | Net Unrealized Appreciation(Depreciation) | Total Net Assets | |||||||||||||||||||||
Number of Shares | Par Value | |||||||||||||||||||||||||
Balance, December 31, 2014 | 32,950,288 | $ | 32,950 | $ | 542,119,994 | $ | 12,926,514 | $ | 12,464,699 | $ | (36,717,528 | ) | $ | 530,826,629 | ||||||||||||
Net investment income | — | — | — | 52,453,760 | — | — | 52,453,760 | |||||||||||||||||||
Stock-based compensation | — | — | 5,200,761 | — | — | — | 5,200,761 | |||||||||||||||||||
Realized gain (loss) on investments | — | — | — | — | (30,297,707 | ) | 29,641,715 | (655,992 | ) | |||||||||||||||||
Net unrealized loss on investments / foreign currency | — | — | — | — | — | (12,257,411 | ) | (12,257,411 | ) | |||||||||||||||||
Loss on extinguishment of debt | — | — | — | (1,394,017 | ) | — | — | (1,394,017 | ) | |||||||||||||||||
Tax Benefit | — | — | — | 255,562 | — | — | 255,562 | |||||||||||||||||||
Dividends / distributions | 125,298 | 125 | 2,676,308 | (50,576,458 | ) | (8,242,911 | ) | — | (56,142,936 | ) | ||||||||||||||||
Expenses related to public offering of common stock | — | — | (54,967 | ) | — | — | — | (54,967 | ) | |||||||||||||||||
Issuance of restricted stock | 360,840 | 361 | (361 | ) | — | — | — | — | ||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (115,077 | ) | (115 | ) | (2,497,597 | ) | — | — | — | (2,497,712 | ) | |||||||||||||||
Balance, September 30, 2015 | 33,321,349 | $ | 33,321 | $ | 547,444,138 | $ | 13,665,361 | $ | (26,075,919 | ) | $ | (19,333,224 | ) | $ | 515,733,677 |
Common Stock | Additional Paid-In Capital | Investment Income in Excess of Distributions | Accumulated Realized 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 | — | — | — | 41,768,153 | — | — | 41,768,153 | |||||||||||||||||||
Stock-based compensation | — | — | 7,502,500 | — | — | — | 7,502,500 | |||||||||||||||||||
Realized gain (loss) on investments | — | — | — | — | (6,687,845 | ) | 7,532,502 | 844,657 | ||||||||||||||||||
Net unrealized loss on investments / foreign currency | — | — | — | — | — | (15,666,394 | ) | (15,666,394 | ) | |||||||||||||||||
Tax benefit | — | — | — | 47,342 | — | — | 47,342 | |||||||||||||||||||
Dividends / distributions | 120,562 | 120 | 2,325,851 | (51,389,199 | ) | — | — | (49,063,228 | ) | |||||||||||||||||
Public offering of common stock | 6,742,362 | 6,742 | 129,129,554 | — | — | — | 129,136,296 | |||||||||||||||||||
Issuance of restricted stock | 364,605 | 365 | (365 | ) | — | — | — | — | ||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (197,252 | ) | (197 | ) | (3,581,675 | ) | — | — | — | (3,581,872 | ) | |||||||||||||||
Balance, September 30, 2016 | 40,405,403 | $ | 40,405 | $ | 684,618,304 | $ | 6,553,437 | $ | (32,501,174 | ) | $ | (39,355,763 | ) | $ | 619,355,209 |
Nine Months Ended | Nine Months Ended | ||||||
September 30, 2016 | September 30, 2015 | ||||||
Cash flows from operating activities: | |||||||
Net increase in net assets resulting from operations | $ | 26,993,758 | $ | 38,401,902 | |||
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities: | |||||||
Purchases of portfolio investments | (163,867,651 | ) | (352,445,028 | ) | |||
Repayments received/sales of portfolio investments | 182,153,894 | 261,002,599 | |||||
Loan origination and other fees received | 3,205,460 | 5,741,331 | |||||
Net realized loss on investments | 6,687,845 | 30,297,707 | |||||
Net unrealized depreciation (appreciation) on investments | 9,525,827 | (18,127,974 | ) | ||||
Net unrealized depreciation (appreciation) on foreign currency borrowings | 569,382 | (1,942,776 | ) | ||||
Deferred income taxes | (1,961,317 | ) | 2,686,444 | ||||
Payment-in-kind interest accrued, net of payments received | (4,177,550 | ) | (2,084,305 | ) | |||
Amortization of deferred financing fees | 1,644,826 | 1,636,224 | |||||
Loss on extinguishment of debt | — | 1,394,017 | |||||
Accretion of loan origination and other fees | (3,676,003 | ) | (4,897,834 | ) | |||
Accretion of loan discounts | (307,081 | ) | (362,424 | ) | |||
Accretion of discount on SBA-guaranteed debentures payable | 31,899 | 140,185 | |||||
Depreciation expense | 52,369 | 44,552 | |||||
Stock-based compensation | 7,502,500 | 5,200,761 | |||||
Changes in operating assets and liabilities: | |||||||
Interest, fees and other receivables | (2,074,332 | ) | 1,823,785 | ||||
Prepaid expenses and other current assets | (743,114 | ) | (538,708 | ) | |||
Accounts payable and accrued liabilities | (2,827,297 | ) | (1,847,069 | ) | |||
Interest payable | (2,176,980 | ) | (2,098,783 | ) | |||
Taxes payable | (735,498 | ) | (2,451,879 | ) | |||
Net cash provided by (used in) operating activities | 55,820,937 | (38,427,273 | ) | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (69,177 | ) | (55,035 | ) | |||
Net cash used in investing activities | (69,177 | ) | (55,035 | ) | |||
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 | 174,000,000 | |||||
Repayments of credit facility | (109,300,000 | ) | (114,000,000 | ) | |||
Proceeds from notes | — | 83,372,640 | |||||
Redemption of notes | — | (69,000,000 | ) | ||||
Financing fees paid | (1,123,400 | ) | (2,919,436 | ) | |||
Net proceeds (expenses) related to public offering of common stock | 129,136,296 | (54,967 | ) | ||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (3,581,872 | ) | (2,497,712 | ) | |||
Cash dividends/distributions paid | (49,063,228 | ) | (56,142,936 | ) | |||
Net cash provided by financing activities | 59,969,645 | 12,757,589 | |||||
Net increase (decrease) in cash and cash equivalents | 115,721,405 | (25,724,719 | ) | ||||
Cash and cash equivalents, beginning of period | 52,615,418 | 78,759,026 | |||||
Cash and cash equivalents, end of period | $ | 168,336,823 | $ | 53,034,307 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 19,929,857 | $ | 19,798,265 | |||
Summary of non-cash financing transactions: | |||||||
Dividends/distributions paid through DRIP share issuances | $ | 2,325,971 | $ | 2,676,433 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 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 | $ | 1,339,000 | ||||||||||
2,000,000 | 1,339,000 | |||||||||||||||
Access Medical Acquisition, Inc. (3%)* | Operator of Primary Care Clinics | Subordinated Notes (10% Cash, 2% PIK, Due 01/22) | $ | 13,819,514 | 13,584,652 | 13,584,652 | ||||||||||
Class A Units (1,500,000 units) | 1,500,000 | 4,678,000 | ||||||||||||||
13,819,514 | 15,084,652 | 18,262,652 | ||||||||||||||
Agilex Flavors & Fragrances, Inc. (2%)* | Custom Fragrance Producer | Subordinated Note (12% Cash, Due 11/21) | 13,168,124 | 13,044,678 | 13,044,678 | |||||||||||
Common Units (1,250 units) | 1,250,000 | 2,371,000 | ||||||||||||||
13,168,124 | 14,294,678 | 15,415,678 | ||||||||||||||
AGM Automotive, LLC (1%)* | Auto Industry Interior Components Supplier | Units (1,500,000 units) | 630,134 | 4,128,000 | ||||||||||||
630,134 | 4,128,000 | |||||||||||||||
All Metals Holding, LLC (1%)* | Steel Processor and Distributor | Subordinated Note (11% Cash, Due 03/21) | 6,033,333 | 5,792,190 | 5,792,190 | |||||||||||
Bridge Note (14% PIK, Due 11/16) | 617,153 | 612,231 | 906,000 | |||||||||||||
Units (83,025 units) | 253,000 | 269,000 | ||||||||||||||
6,650,486 | 6,657,421 | 6,967,190 | ||||||||||||||
Avkem International, LLC (1%)* | Flux and Foundry Manufacturer and Supplier | Subordinated Note (10% Cash, 4% PIK, Due 12/17) | 4,112,935 | 4,066,306 | 4,066,306 | |||||||||||
4,112,935 | 4,066,306 | 4,066,306 | ||||||||||||||
AVL Holdings, Inc. (0%)* | Manufacturer and Distributor for Independent Artists and Authors | Common Stock (138 shares) | 1,300,000 | 1,761,000 | ||||||||||||
1,300,000 | 1,761,000 | |||||||||||||||
Baker Hill Acquisition, LLC (2%)* | Loan Origination Software Solutions Provider | Subordinated Notes (12% Cash, Due 03/21) | 13,500,000 | 13,326,485 | 13,326,485 | |||||||||||
Limited Partnership Interest | 1,498,500 | 1,056,000 | ||||||||||||||
13,500,000 | 14,824,985 | 14,382,485 | ||||||||||||||
Cafe Enterprises, Inc. (2%)* | Restaurant | Subordinated Note (7% Cash, 7% PIK, Due 06/19) | 13,641,423 | 13,491,522 | 10,684,000 | |||||||||||
Series C Preferred Stock (10,000 shares) | 1,000,000 | 169,000 | ||||||||||||||
13,641,423 | 14,491,522 | 10,853,000 | ||||||||||||||
Capital Contractors, Inc. (0%)* | Janitorial and Facilities Maintenance Services | Subordinated Notes (5% Cash, Due 6/20) | 9,843,542 | 9,704,782 | 1,979,000 | |||||||||||
Series A Redeemable Preferred Stock (200 shares) | 2,000,000 | — | ||||||||||||||
Common Stock Warrants (20 shares) | 492,000 | — | ||||||||||||||
9,843,542 | 12,196,782 | 1,979,000 | ||||||||||||||
Captek Softgel International, Inc. (3%)* | Nutraceutical Manufacturer | Subordinated Note (10% Cash, 2.5% PIK, Due 06/21) | 15,290,087 | 15,022,055 | 15,022,055 | |||||||||||
Common Stock (15,000 shares) | 1,500,000 | 1,446,000 | ||||||||||||||
15,290,087 | 16,522,055 | 16,468,055 | ||||||||||||||
Carolina Beverage Group, LLC (0%)* | Beverage Manufacturing and Packaging | Class B Units (11,974 units) | 119,735 | 116,000 | ||||||||||||
119,735 | 116,000 | |||||||||||||||
Centerfield Media Holding Company (3%)* | Digital Marketing | Subordinated Note (10% Cash, 3.5% PIK, Due 03/21) | 18,690,799 | 18,385,793 | 18,385,793 | |||||||||||
Common Shares (1,000 shares) | 1,000,000 | 1,973,000 | ||||||||||||||
18,690,799 | 19,385,793 | 20,358,793 | ||||||||||||||
Chromaflo Technologies Parent LP (2%)* | Colorant Manufacturer and Distributor | Second Lien Term Loan (8.3% Cash, Due 06/20) | 9,999,618 | 9,967,597 | 9,967,597 | |||||||||||
Class A Units (22,561 units) | 906,604 | 2,437,000 | ||||||||||||||
9,999,618 | 10,874,201 | 12,404,597 | ||||||||||||||
Community Intervention Services, Inc. (2%)* | Provider of Behavioral Health Services | Subordinated Note (10% Cash, 3% PIK, Due 01/21) (6) | 16,738,706 | 15,407,588 | 11,364,000 | |||||||||||
16,738,706 | 15,407,588 | 11,364,000 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) September 30, 2016 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Comverge, Inc. (3%)* | Provider of Intelligent Energy Management Solutions | Senior Note (12% Cash, Due 05/18) | $ | 15,505,583 | $ | 15,391,915 | $ | 15,391,915 | ||||||||
Preferred Stock (703 shares) | 554,458 | 818,000 | ||||||||||||||
Common Stock (1,000,000 shares) | 100,000 | 94,000 | ||||||||||||||
15,505,583 | 16,046,373 | 16,303,915 | ||||||||||||||
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 | 2,052,000 | ||||||||||||
1,500,000 | 2,052,000 | |||||||||||||||
Data Source Holdings, LLC (0%)* | Print Supply Chain Management Services | Common Units (47,503 units) | 1,000,000 | 795,000 | ||||||||||||
1,000,000 | 795,000 | |||||||||||||||
DialogDirect, Inc. (3%)* | Business Process Outsourcing Provider | Subordinated Notes (12% Cash, 1.5% PIK, Due 04/20) | 16,064,880 | 15,951,956 | 15,951,956 | |||||||||||
16,064,880 | 15,951,956 | 15,951,956 | ||||||||||||||
DLC Acquisition, LLC (6%)* | Staffing Firm | Senior Notes (10% Cash, Due 12/20) | 21,400,000 | 21,112,007 | 21,112,007 | |||||||||||
Senior Note (10% Cash, 2% PIK, Due 12/20) | 18,896,825 | 18,668,129 | 18,668,129 | |||||||||||||
40,296,825 | 39,780,136 | 39,780,136 | ||||||||||||||
DLR Restaurants, LLC (0%)* | Restaurant | Royalty Rights | — | — | ||||||||||||
— | — | |||||||||||||||
Dyno Acquiror, Inc. (1%)* | Sewing Products and Seasonal Decorative Products Supplier | Subordinated Note (12% Cash, 2% PIK, Due 11/19) | 7,493,799 | 7,430,044 | 7,430,044 | |||||||||||
Series A Units (600,000 units) | 600,000 | 438,000 | ||||||||||||||
7,493,799 | 8,030,044 | 7,868,044 | ||||||||||||||
Eckler's Holdings, Inc. (1%)* | Restoration Parts and Accessories for Classic Cars and Trucks | Subordinated Note (11% Cash, 4.5% PIK, Due 07/18) | 9,828,535 | 9,762,022 | 8,216,000 | |||||||||||
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 | — | ||||||||||||||
9,828,535 | 11,726,837 | 8,216,000 | ||||||||||||||
Flowchem Holdings LLC (0%)* | Services to Crude Oil Pipeline Operators | Common Units (1,000,000 units) | 782,356 | 2,322,000 | ||||||||||||
782,356 | 2,322,000 | |||||||||||||||
FrontStream Holdings, LLC (2%)* | Payment and Donation Management Product Service Provider | Subordinated Note (12.5% Cash, Due 12/20) | 13,375,000 | 13,248,898 | 13,248,898 | |||||||||||
Series C-2 Preferred Shares (500 shares) | 500,000 | 500,000 | ||||||||||||||
13,375,000 | 13,748,898 | 13,748,898 | ||||||||||||||
Frontstreet Facility Solutions, Inc. (1%)* | Retail, Restaurant and Commercial Facilities Maintenance | Subordinated Note (11% Cash, 2% PIK, Due 07/18) | 8,462,629 | 8,411,531 | 7,929,000 | |||||||||||
Series A Convertible Preferred Stock (2,500 shares) | 250,000 | — | ||||||||||||||
Series B Convertible Preferred Stock (5,556 shares) | 500,000 | — | ||||||||||||||
8,462,629 | 9,161,531 | 7,929,000 | ||||||||||||||
Frozen Specialties, Inc. (2%)* | Frozen Foods Manufacturer | Subordinated Note (10% Cash, 4% PIK, Due 12/17) | 13,536,975 | 13,536,975 | 14,736,975 | |||||||||||
13,536,975 | 13,536,975 | 14,736,975 | ||||||||||||||
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) | 23,013,847 | 22,680,826 | 22,680,826 | |||||||||||
23,013,847 | 22,680,826 | 22,680,826 | ||||||||||||||
Halo Branded Solutions, Inc. (2%)* | Supply Chain Services | Subordinated Notes (11% Cash, 1% PIK, Due 10/22) | 10,383,861 | 10,157,677 | 10,157,677 | |||||||||||
Class A1 Units (2,600 units) | 2,600,000 | 2,600,000 | ||||||||||||||
10,383,861 | 12,757,677 | 12,757,677 | ||||||||||||||
HKW Capital Partners IV, L.P. (0%)*(4) | Multi-Sector Holdings | 0.6% Limited Partnership Interest | 924,605 | 1,243,000 | ||||||||||||
924,605 | 1,243,000 | |||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) September 30, 2016 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | Principal Amount | Cost | Fair Value(3) | |||||||||||
HTC Borrower, LLC (4%)* | Hunting and Outdoor Products | Subordinated Notes (10% Cash, 3% PIK, Due 09/20) | $ | 25,932,888 | $ | 25,640,882 | $ | 25,640,882 | ||||||||
25,932,888 | 25,640,882 | 25,640,882 | ||||||||||||||
ICP Industrial, Inc. (4%)* | Coatings Formulator and Manufacturer | Subordinated Note (9.5% Cash, Due 04/22) | 7,500,000 | 7,433,344 | 7,433,344 | |||||||||||
Subordinated Notes (10% Cash, 1% PIK, Due 10/22) | 8,067,729 | 7,921,494 | 7,921,494 | |||||||||||||
Subordinated Notes (14% PIK, Due 10/22) | 5,546,862 | 5,490,449 | 5,490,449 | |||||||||||||
Class A Units (1,289 units) | 1,751,483 | 1,697,000 | ||||||||||||||
21,114,591 | 22,596,770 | 22,542,287 | ||||||||||||||
Inland Pipe Rehabilitation Holding Company LLC (0%)* | Cleaning and Repair Services | Membership Interest Purchase Warrant (3%) | 853,500 | 1,968,000 | ||||||||||||
853,500 | 1,968,000 | |||||||||||||||
KidKraft, Inc. (4%)* | Children's Toy Manufacturer and Distributor | Second Lien Term Note (11% Cash, 1% PIK, Due 03/22) | 27,600,767 | 27,048,767 | 27,048,767 | |||||||||||
27,600,767 | 27,048,767 | 27,048,767 | ||||||||||||||
K-Square Restaurant Partners, LP (F/K/A The Krystal Company) (1%)* | Restaurant | Class A Units of Limited Partnership (2,000 units) | 638,260 | 3,707,000 | ||||||||||||
638,260 | 3,707,000 | |||||||||||||||
Media Storm, LLC (1%)* | Marketing Services | Subordinated Note (10% Cash, Due 08/19) | 6,545,455 | 6,530,280 | 6,230,000 | |||||||||||
Membership Units (1,216,204 units) | 1,176,957 | 563,000 | ||||||||||||||
6,545,455 | 7,707,237 | 6,793,000 | ||||||||||||||
MIC Holding LLC (F/K/A Magpul Industries Corp.) (2%)* | Firearm Accessories Manufacturer and Distributor | Preferred Units (1,470 units) | 1,470,000 | 2,911,000 | ||||||||||||
Common Units (30,000 units) | 30,000 | 7,620,000 | ||||||||||||||
1,500,000 | 10,531,000 | |||||||||||||||
Micross Solutions LLC (4%)* | Provider of Semiconductor Products and Services | Subordinated Note (12% Cash, 3% PIK, Due 06/18) | 24,248,692 | 24,141,913 | 24,141,913 | |||||||||||
Class A-2 Common Units (1,979,524 units) | 2,019,693 | 1,082,000 | ||||||||||||||
24,248,692 | 26,161,606 | 25,223,913 | ||||||||||||||
Motor Vehicle Software Corporation (3%)* | Provider of EVR Services | Subordinated Note (10% Cash, 1% PIK, Due 03/21) | 20,219,264 | 19,876,812 | 19,876,812 | |||||||||||
Class A Units (1,000,000 units) | 1,064,960 | 1,267,000 | ||||||||||||||
20,219,264 | 20,941,772 | 21,143,812 | ||||||||||||||
Nautic Partners VII, LP (0%)*(4) | Multi-Sector Holdings | 0.4% Limited Partnership Interest | 1,156,908 | 1,691,010 | ||||||||||||
1,156,908 | 1,691,010 | |||||||||||||||
Nomacorc, LLC (3%)* | Synthetic Wine Cork Producer | Subordinated Note (10% Cash, 2.3% PIK, Due 07/21) | 20,756,540 | 20,440,373 | 16,344,000 | |||||||||||
Limited Partnership Interest | 2,150,637 | — | ||||||||||||||
20,756,540 | 22,591,010 | 16,344,000 | ||||||||||||||
Orchid Underwriters Agency, LLC (4%)* | Insurance Underwriter | Term B Note (10% Cash, Due 11/19) | 22,644,852 | 22,325,682 | 22,325,682 | |||||||||||
Class A Preferred Units (15,000 units) | 1,500,000 | 1,909,000 | ||||||||||||||
Class A Common Units (15,000 units) | — | 996,000 | ||||||||||||||
22,644,852 | 23,825,682 | 25,230,682 | ||||||||||||||
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) | 9,083,704 | 5,927,482 | 1,700,000 | |||||||||||
Common Unit Purchase Warrants | 590,200 | — | ||||||||||||||
9,083,704 | 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. (1%)* | Landscape Services | Subordinated Note (11% Cash, 3% PIK, Due 08/21) | 6,851,547 | 6,735,597 | 6,735,597 | |||||||||||
Series A Preferred Units (39 units) | 3,654,253 | 1,821,000 | ||||||||||||||
6,851,547 | 10,389,850 | 8,556,597 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) September 30, 2016 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Smile Brands, Inc. (4%)* | Dental Service Organization | Subordinated Notes (10% Cash, 2.0% PIK, Due 02/23) | $ | 22,228,903 | $ | 21,785,434 | $ | 21,785,434 | ||||||||
Class A Units (3,000 units) | 3,000,000 | 3,000,000 | ||||||||||||||
22,228,903 | 24,785,434 | 24,785,434 | ||||||||||||||
SPC Partners V, LP (0%)*(4) | Multi-Sector Holdings | 0.7% Limited Partnership Interest | 1,777,882 | 1,893,000 | ||||||||||||
1,777,882 | 1,893,000 | |||||||||||||||
Specialized Desanders, Inc. (3%)*(4) | Sand and Particulate Removal Equipment Provider for Oil and Gas Companies | Subordinated Note (12% Cash, 2% PIK, Due 03/20) | 16,110,042 | 15,953,808 | 12,758,951 | |||||||||||
Class C Partnership Units (2,000,000 units) | 1,937,421 | 2,708,000 | ||||||||||||||
16,110,042 | 17,891,229 | 15,466,951 | ||||||||||||||
Tate's Bake Shop (2%)* | Producer of Baked Goods | Subordinated Note (10% Cash, 3% PIK, Due 02/20) | 10,655,757 | 10,516,293 | 10,516,293 | |||||||||||
Limited Partnership Interest | 925,000 | 1,225,000 | ||||||||||||||
10,655,757 | 11,441,293 | 11,741,293 | ||||||||||||||
TCFI Merlin LLC (2%)* | Specialty Staffing Service Provider | Senior Note (10% Cash, 1% PIK, Due 09/19) | 13,361,851 | 13,164,450 | 13,164,450 | |||||||||||
Limited Partnership Units (500,000 units) | 500,000 | 500,000 | ||||||||||||||
13,361,851 | 13,664,450 | 13,664,450 | ||||||||||||||
The Cook & Boardman Group, LLC (3%)* | Distributor of Doors and Related Products | Subordinated Note (10% Cash, 2.5% PIK, Due 03/20) | 14,746,109 | 14,550,859 | 14,550,859 | |||||||||||
Class A Units (1,400,000 units) | 1,400,000 | 2,606,000 | ||||||||||||||
14,746,109 | 15,950,859 | 17,156,859 | ||||||||||||||
TK USA Enterprises, Inc. (2%)* | Hardware Designer and Distributor | Subordinated Note (11% Cash, Due 10/23) | 12,500,000 | 12,261,531 | 12,261,531 | |||||||||||
12,500,000 | 12,261,531 | 12,261,531 | ||||||||||||||
Travelpro Products, Inc. ("Travelpro") and TP - Holiday Group Limited ("TP") (3%)* | Luggage and Travel Bag Supplier | Second Lien Term Note - Travelpro (11% Cash, 2% PIK, Due 11/22) | 10,074,563 | 9,861,807 | 9,861,807 | |||||||||||
Second Lien Term Note - TP (11% Cash, 2% PIK, Due 11/22)(4) | 8,926,530 | 8,735,050 | 8,683,187 | |||||||||||||
Common Units - Travelpro (2,000,000 units) | 2,000,000 | 2,000,000 | ||||||||||||||
19,001,093 | 20,596,857 | 20,544,994 | ||||||||||||||
United Biologics, LLC (2%)* | Allergy Immunotherapy | Subordinated Note (12% Cash, 2% PIK, Due 03/17) | 12,693,170 | 12,550,040 | 12,550,040 | |||||||||||
Class A-1 Common Units (18,818 units) | 137,324 | 137,000 | ||||||||||||||
Class A Common Units (177,935 units) | 1,999,989 | 1,586,000 | ||||||||||||||
Class A-2 Common Kicker Units (444,003 units) | — | — | ||||||||||||||
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 | 330,000 | ||||||||||||||
12,693,170 |