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 September 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 November 2, 2016 was 40,360,906.

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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 September 30, 2016 and Consolidated Balance Sheet as of December 31, 2015	3
	Unaudited Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2016 and 2015	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Nine Months Ended September 30, 2016 and 2015	5
	Unaudited Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2016 and 2015	6
	Unaudited Consolidated Schedule of Investments as of September 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 Nine Months Ended September 30, 2016	38
	Schedule of Investments in and Advances to Affiliates for the Year Ended December 31, 2015	41
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	45
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	60
Item 4.	Controls and Procedures	60
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	61
Item 1A.	Risk Factors	61
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	61
Item 3.	Defaults Upon Senior Securities	61
Item 4.	Mine Safety Disclosures	61
Item 5.	Other Information	61
Item 6.	Exhibits	62
Signatures		63
Exhibits

2

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

TRIANGLE CAPITAL CORPORATION

Consolidated Balance Sheets

	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

See accompanying notes.

3

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Operations

	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

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	—			—				—				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

See accompanying notes.

5

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows 

	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

See accompanying notes.

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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

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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

8

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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

9

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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