Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

__________________________________________________________

Form 10-Q

__________________________________________________________

(Mark One)

ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2017

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,” “smaller reporting company” and "emerging growth 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	¨
		Emerging growth company	¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

The number of shares outstanding of the registrant’s Common Stock on May 3, 2017 was 47,681,397.

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TRIANGLE CAPITAL CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Consolidated Balance Sheet as of March 31, 2017 and Consolidated Balance Sheet as of December 31, 2016	3
	Unaudited Consolidated Statements of Operations for the Three Months Ended March 31, 2017 and 2016	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Three Months Ended March 31, 2017 and 2016	5
	Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2017 and 2016	6
	Unaudited Consolidated Schedule of Investments as of March 31, 2017	7
	Consolidated Schedule of Investments as of December 31, 2016	14
	Notes to Unaudited Consolidated Financial Statements	21
	Unaudited Schedule of Investments in and Advances to Affiliates for the Three Months Ended March 31, 2017	38
	Schedule of Investments in and Advances to Affiliates for the Year Ended December 31, 2016	42
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	46
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59
Item 4.	Controls and Procedures	59
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	60
Item 1A.	Risk Factors	60
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	60
Item 3.	Defaults Upon Senior Securities	60
Item 4.	Mine Safety Disclosures	60
Item 5.	Other Information	60
Item 6.	Exhibits	61
Signatures		62
Exhibits

2

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

TRIANGLE CAPITAL CORPORATION

Consolidated Balance Sheets

	March 31, 2017				December 31, 2016
	(Unaudited)
Assets:
Investments at fair value:
Non-Control / Non-Affiliate investments (cost of $948,873,881 and $888,974,154 as of March 31, 2017 and December 31, 2016, respectively)	$	922,229,496			$	857,604,639
Affiliate investments (cost of $199,044,196 and $162,539,224 as of March 31, 2017 and December 31, 2016, respectively)	192,981,537				161,510,773
Control investments (cost of $42,926,673 and $45,418,113 as of March 31, 2017 and December 31, 2016, respectively)	17,997,769				18,791,769
Total investments at fair value	1,133,208,802				1,037,907,181
Cash and cash equivalents	90,603,276				107,087,663
Interest, fees and other receivables	5,494,514				10,189,788
Prepaid expenses and other current assets	1,848,178				1,659,570
Deferred financing fees	3,001,250				2,699,960
Property and equipment, net	107,211				106,494
Total assets	$	1,234,263,231			$	1,159,650,656
Liabilities:
Accounts payable and accrued liabilities	$	3,301,982			$	6,797,244
Interest payable	1,559,113				3,996,940
Taxes payable	—				489,691
Deferred income taxes	570,505				2,053,701
Borrowings under credit facility	91,090,267				127,011,475
Notes	162,914,760				162,755,381
SBA-guaranteed debentures payable	245,619,315				245,389,966
Total liabilities	505,055,942				548,494,398
Commitments and contingencies (Note 7)
Net Assets:
Common stock, $0.001 par value per share (150,000,000 shares authorized, 47,681,397 and 40,401,292 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively)	47,681				40,401
Additional paid-in capital	819,123,942				686,835,054
Investment income in excess of distributions	2,265,568				5,884,512
Accumulated realized losses	(37,530,553		)		(24,211,594		)
Net unrealized depreciation	(54,699,349		)		(57,392,115		)
Total net assets	729,207,289				611,156,258
Total liabilities and net assets	$	1,234,263,231			$	1,159,650,656
Net asset value per share	$	15.29			$	15.13

See accompanying notes.

3

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Operations

	Three Months Ended				Three Months Ended
	March 31, 2017				March 31, 2016
Investment income:
Interest income:
Non-Control / Non-Affiliate investments	$	20,470,837			$	18,182,654
Affiliate investments	3,372,135				3,384,369
Control investments	269,536				193,616
Total interest income	24,112,508				21,760,639
Dividend income:
Non-Control / Non-Affiliate investments	281,229				(1,246,760		)
Affiliate investments	—				160,055
Total dividend income	281,229				(1,086,705		)
Fee and other income:
Non-Control / Non-Affiliate investments	1,917,238				1,623,886
Affiliate investments	300,264				310,015
Control investments	100,000				100,000
Total fee and other income	2,317,502				2,033,901
Payment-in-kind interest income:
Non-Control / Non-Affiliate investments	2,639,382				2,921,604
Affiliate investments	738,466				989,213
Total payment-in-kind interest income	3,377,848				3,910,817
Interest income from cash and cash equivalents	101,683				37,218
Total investment income	30,190,770				26,655,870
Operating expenses:
Interest and other financing fees	6,910,303				6,518,570
Compensation expenses	4,250,413				9,450,493
General and administrative expenses	1,210,621				1,088,724
Total operating expenses	12,371,337				17,057,787
Net investment income	17,819,433				9,598,083
Realized and unrealized gains (losses) on investments and foreign currency borrowings:
Net realized gains (losses):
Non-Control / Non-Affiliate investments	(12,360,335		)		584,787
Affiliate investments	3,532,816				1,427
Control investments	(4,491,440		)		—
Net realized gains (losses)	(13,318,959		)		586,214
Net unrealized appreciation (depreciation):
Investments	2,871,558				3,084,323
Foreign currency borrowings	(178,792		)		(852,523		)
Net unrealized appreciation (depreciation)	2,692,766				2,231,800
Net realized and unrealized gains (losses) on investments and foreign currency borrowings	(10,626,193		)		2,818,014
Tax benefit	—				11,161
Net increase in net assets resulting from operations	$	7,193,240			$	12,427,258
Net investment income per share—basic and diluted	$	0.42			$	0.29
Net increase in net assets resulting from operations per share—basic and diluted	$	0.17			$	0.37
Dividends/distributions per share:
Regular quarterly dividends/distributions	$	0.45			$	0.54
Total dividends/distributions per share	$	0.45			$	0.54
Weighted average shares outstanding—basic and diluted	42,743,469				33,480,346

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, 2015	33,375,126			$	33,375			$	549,242,439			$	16,127,141			$	(25,813,329	)		$	(31,221,871	)		$	508,367,755
Net investment income	—			—				—				9,598,083				—				—				9,598,083
Stock-based compensation	—			—				4,301,118				—				—				—				4,301,118
Realized gain (loss) on investments	—			—				—				—				586,214				(351,458		)		234,756
Net unrealized gain on investments / foreign currency	—			—				—				—				—				2,583,258				2,583,258
Tax benefit	—			—				—				11,161				—				—				11,161
Dividends / distributions	42,694			42				844,036				(18,108,221		)		—				—				(17,264,143		)
Issuance of restricted stock	351,000			351				(351		)		—				—				—				—
Common stock withheld for payroll taxes upon vesting of restricted stock	(192,384	)		(192		)		(3,483,882		)		—				—				—				(3,484,074		)
Balance, March 31, 2016	33,576,436			$	33,576			$	550,903,360			$	7,628,164			$	(25,227,115	)		$	(28,990,071	)		$	504,347,914

 

	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, 2016	40,401,292			$	40,401			$	686,835,054			$	5,884,512			$	(24,211,594	)		$	(57,392,115	)		$	611,156,258
Net investment income	—			—				—				17,819,433				—				—				17,819,433
Stock-based compensation	—			—				1,453,904				—				—				—				1,453,904
Realized gain (loss) on investments	—			—				—				—				(13,318,959		)		12,342,077				(976,882		)
Net unrealized loss on investments / foreign currency	—			—				—				—				—				(9,649,311		)		(9,649,311		)
Dividends / distributions	40,559			40				749,913				(21,438,377		)		—				—				(20,688,424		)
Public offering of common stock	7,000,000			7,000				132,198,931				—				—				—				132,205,931
Issuance of restricted stock	347,000			347				(347		)		—				—				—				—
Common stock withheld for payroll taxes upon vesting of restricted stock	(107,454	)		(107		)		(2,113,513		)		—				—				—				(2,113,620		)
Balance, March 31, 2017	47,681,397			$	47,681			$	819,123,942			$	2,265,568			$	(37,530,553	)		$	(54,699,349	)		$	729,207,289

See accompanying notes.

5

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows 

	Three Months Ended				Three Months Ended
	March 31, 2017				March 31, 2016
Cash flows from operating activities:
Net increase in net assets resulting from operations	$	7,193,240			$	12,427,258
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of portfolio investments	(161,518,093		)		(11,812,331		)
Repayments received/sales of portfolio investments	53,770,711				53,620,680
Loan origination and other fees received	2,638,485				274,158
Net realized (gain) loss on investments	13,318,959				(586,214		)
Net unrealized appreciation on investments	(1,388,362		)		(2,647,804		)
Net unrealized depreciation on foreign currency borrowings	178,792				852,523
Deferred income taxes	(1,483,196		)		(436,517		)
Payment-in-kind interest accrued, net of payments received	(690,432		)		(317,840		)
Amortization of deferred financing fees	587,438				531,993
Accretion of loan origination and other fees	(1,349,409		)		(1,135,001		)
Accretion of loan discounts	(83,480		)		(95,188		)
Accretion of discount on SBA-guaranteed debentures payable	—				31,899
Depreciation expense	17,790				15,592
Stock-based compensation	1,453,904				4,301,118
Changes in operating assets and liabilities:
Interest, fees and other receivables	4,695,274				(1,891,253		)
Prepaid expenses and other current assets	(188,608		)		(886,837		)
Accounts payable and accrued liabilities	(3,495,262		)		(5,225,308		)
Interest payable	(2,437,827		)		(2,156,101		)
Taxes payable	(489,691		)		(735,498		)
Net cash provided by (used in) operating activities	(89,269,767		)		44,129,329
Cash flows from investing activities:
Purchases of property and equipment	(18,507		)		(33,916		)
Net cash used in investing activities	(18,507		)		(33,916		)
Cash flows from financing activities:
Repayments of SBA-guaranteed debentures payable	—				(7,800,000		)
Borrowings under credit facility	50,000,000				30,000,000
Repayments of credit facility	(86,100,000		)		(34,000,000		)
Financing fees paid	(500,000		)		—
Net proceeds related to public offering of common stock	132,205,931				—
Common stock withheld for payroll taxes upon vesting of restricted stock	(2,113,620		)		(3,484,074		)
Cash dividends/distributions paid	(20,688,424		)		(17,264,143		)
Net cash provided by (used in) financing activities	72,803,887				(32,548,217		)
Net increase (decrease) in cash and cash equivalents	(16,484,387		)		11,547,196
Cash and cash equivalents, beginning of period	107,087,663				52,615,418
Cash and cash equivalents, end of period	$	90,603,276			$	64,162,614
Supplemental disclosure of cash flow information:
Cash paid for interest	$	8,541,314			$	7,932,474
Summary of non-cash financing transactions:
Dividends/distributions paid through DRIP share issuances	$	749,953			$	844,078

See accompanying notes.

6

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments March 31, 2017
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			$	—
										2,000,000				—
Access Medical Acquisition, Inc. (2%)*		Operator of Primary Care Clinics		Subordinated Notes (10% Cash, 2% PIK, Due 01/22)		$	13,819,514			13,602,148				13,602,148
				Class A Units (1,500,000 units)						901,026				3,772,000
						13,819,514				14,503,174				17,374,148
Aden & Anais Holdings, Inc. (0%)*		Baby Products		Common Stock (20,000 shares)						2,000,000				2,000,000
										2,000,000				2,000,000
Agilex Flavors & Fragrances, Inc. (2%)*		Custom Fragrance Producer		Subordinated Note (12% Cash, Due 11/21)		13,168,124				13,053,417				13,053,417
				Common Units (1,250 units)						1,250,000				2,432,000
						13,168,124				14,303,417				15,485,417
AGM Automotive, LLC (1%)*		Auto Industry Interior Components Supplier		Units (1,500,000 units)						630,134				4,364,000
										630,134				4,364,000
AM General, LLC (4%)*		Defense Manufacturing		Senior Note (8.3% Cash, Due 12/21)		9,750,000				9,606,135				9,606,135
				Second Lien Term Note (12.8% Cash, Due 06/22)		20,000,000				19,419,234				19,419,234
						29,750,000				29,025,369				29,025,369
Avantor Performance Materials Holdings, LLC (2%)*		Life Sciences and Advanced Technologies		Second Lien Term Note (9.3% Cash, Due 03/25)		14,368,421				14,218,421				14,218,421
						14,368,421				14,218,421				14,218,421
Avkem International, LLC (1%)*		Flux and Foundry Manufacturer and Supplier		Subordinated Note (10% Cash, 4% PIK, Due 12/17)		4,112,935				4,084,270				4,084,270
						4,112,935				4,084,270				4,084,270
AVL Holdings, Inc. (0%)*		Manufacturer and Distributor for Independent Artists and Authors		Common Stock (138 shares)						1,300,000				1,831,000
										1,300,000				1,831,000
Baker Hill Acquisition, LLC (2%)*		Loan Origination Software Solutions Provider		Second Lien Term Notes (12% Cash, Due 03/21)		13,500,000				13,342,258				12,371,000
				Limited Partnership Interest						1,498,500				721,000
						13,500,000				14,840,758				13,092,000
Cafe Enterprises, Inc. (1%)*		Restaurant		Subordinated Note (7% Cash, 7% PIK, Due 09/19)		14,128,449				13,999,989				10,253,000
				Series C Preferred Stock (10,000 shares)						1,000,000				—
						14,128,449				14,999,989				10,253,000
Captek Softgel International, Inc. (2%)*		Nutraceutical Manufacturer		Subordinated Note (10% Cash, 2% PIK, Due 06/21)		15,484,373				15,239,007				15,239,007
				Common Stock (15,000 shares)						1,500,000				1,511,000
						15,484,373				16,739,007				16,750,007
Carolina Beverage Group, LLC (0%)*		Beverage Manufacturing and Packaging		Class B Units (11,974 units)						119,735				597,000
										119,735				597,000
Centerfield Media Holding Company (0%)*		Digital Marketing		Common Shares (500 shares)						500,000				1,110,000
										500,000				1,110,000
Community Intervention Services, Inc. (2%)*		Provider of Behavioral Health Services		Subordinated Note (7% Cash, 6% PIK, Due 01/21) (5)		19,017,309				17,732,558				12,440,000
						19,017,309				17,732,558				12,440,000
Comverge, Inc. (2%)*		Provider of Intelligent Energy Management Solutions		Senior Note (12% Cash, Due 05/18)		15,505,583				15,422,028				15,422,028
				Preferred Stock (703 shares)						554,458				851,000
				Common Stock (1,000,000 shares)						100,000				1,350,000
						15,505,583				16,076,486				17,623,028
CPower Ultimate HoldCo, LLC (0%)*		Demand Response Business		Units (345,542 units)						345,542				345,542
										345,542				345,542

7

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2017
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
CWS Holding Company, LLC (0%)*		Manufacturer of Custom Windows and Sliding Doors		Class A Units (1,500,000 units)						$	1,500,000			$	2,127,000
										1,500,000				2,127,000
Data Source Holdings, LLC (0%)*		Print Supply Chain Management Services		Common Units (47,503 units)						1,000,000				889,000
										1,000,000				889,000
Del Real, LLC (2%)*		Hispanic Refrigerated Foods Company		Subordinated Note (11% Cash, Due 04/23)		$	14,000,000			13,735,237				13,735,237
				Class A Units (3,000,000 units)						3,000,000				3,000,000
						14,000,000				16,735,237				16,735,237
DialogDirect, Inc. (1%)*		Business Process Outsourcing Provider		Subordinated Notes (12% Cash, 1.5% PIK, Due 04/20)(6)		16,676,951				16,020,226				9,380,000
						16,676,951				16,020,226				9,380,000
Dimora Brands, Inc. (F/K/A TK USA Enterprises, Inc.) (2%)*		Hardware Designer and Distributor		Second Lien Term Note (11% Cash, Due 10/23)		12,500,000				12,273,646				12,273,646
						12,500,000				12,273,646				12,273,646
DLC Acquisition, LLC (5%)*		Staffing Firm		Senior Notes (10% Cash, Due 12/20)		22,425,000				22,183,724				22,183,724
				Senior Note (10% Cash, 2% PIK, Due 12/20)		17,014,412				16,830,451				16,830,451
						39,439,412				39,014,175				39,014,175
Dyno Acquiror, Inc. (1%)*		Sewing Products and Seasonal Decorative Products Supplier		Subordinated Note (10.5% Cash, 1.5% PIK, Due 08/20)		4,611,389				4,579,161				4,579,161
				Series A Units (600,000 units)						600,000				808,000
						4,611,389				5,179,161				5,387,161
Eckler's Holdings, Inc. (1%)*		Restoration Parts and Accessories for Classic Cars and Trucks		Subordinated Note (10% Cash, 5.5% PIK, Due 03/19)		10,966,663				10,915,450				9,087,000
				Common Stock (18,029 shares)						183,562				—
				Series A Preferred Stock (1,596 shares)						1,596,126				—
				Series B Preferred Stock (702 shares)						435,127				—
						10,966,663				13,130,265				9,087,000
Flowchem Holdings LLC (0%)*		Services to Crude Oil Pipeline Operators		Common Units (1,000,000 units)						782,356				2,718,000
										782,356				2,718,000
Fridababy Holdings, LLC (3%)*		Baby Products		Senior Notes (10.1% Cash, Due 10/21)		23,000,000				22,576,465				22,576,465
				Class B Units (4,500 units)						273,401				273,401
						23,000,000				22,849,866				22,849,866
FrontStream Holdings, LLC (2%)*		Payment and Donation Management Product Service Provider		Subordinated Note (13% Cash, Due 12/20)		13,375,000				13,260,545				12,247,000
				Series C-2 Preferred Shares (500 shares)						500,000				203,000
						13,375,000				13,760,545				12,450,000
Frontstreet Facility Solutions, Inc. (1%)*		Retail, Restaurant and Commercial Facilities Maintenance		Subordinated Note (11% Cash, 2% PIK, Due 07/18)		8,462,629				8,425,293				3,850,000
				Series A Convertible Preferred Stock (2,500 shares)						250,000				—
				Series B Convertible Preferred Stock (5,556 shares)						500,000				—
						8,462,629				9,175,293				3,850,000
Frozen Specialties, Inc. (2%)*		Frozen Foods Manufacturer		Subordinated Note (10% Cash, 4% PIK, Due 12/17)		13,812,107				13,812,107				13,812,107
						13,812,107				13,812,107				13,812,107
GST AutoLeather, Inc. (3%)*		Supplier of Automotive Interior Leather		Subordinated Note (11% Cash, 2% PIK, Due 01/21)		23,247,130				22,941,643				22,941,643
						23,247,130				22,941,643				22,941,643
Halo Branded Solutions, Inc. (2%)*		Supply Chain Services		Subordinated Notes (11% Cash, 1% PIK, Due 10/22)		10,436,424				10,223,983				10,223,983
				Class A1 Units (2,600 units)						2,600,000				4,078,000
						10,436,424				12,823,983				14,301,983
HKW Capital Partners IV, L.P. (0%)*(4)		Multi-Sector Holdings		0.6% Limited Partnership Interest						972,171				1,367,888
										972,171				1,367,888

8

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2017
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)		$	26,327,694			$	26,066,199			$	26,066,199
						26,327,694				26,066,199				26,066,199
ICP Industrial, Inc. (3%)*		Coatings Formulator and Manufacturer		Subordinated Note (9.5% Cash, Due 04/22)		7,500,000				7,437,820				7,437,820
				Subordinated Notes (10% Cash, 1% PIK, Due 10/22)		8,108,568				7,971,222				7,971,222
				Subordinated Notes (14% PIK, Due 10/22)		5,946,403				5,893,249				5,893,249
				Class A Units (1,289 units)						1,751,483				1,941,000
						21,554,971				23,053,774				23,243,291
Inland Pipe Rehabilitation Holding Company LLC (0%)*		Cleaning and Repair Services		Membership Interest Purchase Warrant (3%)						853,500				1,749,000
										853,500				1,749,000
IPS Structural Adhesives Holdings, Inc. (2%)*		Specialty Adhesives and Plumbing Products Manufacturer		Second Lien Term Note (10.5% Cash, Due 12/24)		15,000,000				14,706,098				14,706,098
						15,000,000				14,706,098				14,706,098
KidKraft, Inc. (4%)*		Children's Toy Manufacturer and Distributor		Second Lien Term Note (11% Cash, 1% PIK, Due 03/22)		27,737,601				27,223,302				27,223,302
						27,737,601				27,223,302				27,223,302
K-Square Restaurant Partners, LP (F/K/A The Krystal Company) (1%)*		Restaurant		Class A Units of Limited Partnership (2,000 units)						638,260				3,808,000
										638,260				3,808,000
Lakeview Health Holdings, Inc. (3%)*		Substance Abuse Treatment Service Provider		Senior Note (7.8% Cash, Due 12/21)		18,566,101				18,374,384				18,374,384
				Common Stock (2,000 shares)						2,000,000				2,000,000
						18,566,101				20,374,384				20,374,384
Media Storm, LLC (1%)*		Marketing Services		Subordinated Note (10% Cash, Due 08/19)		6,545,455				6,537,680				5,541,000
				Membership Units (1,216,204 units)						1,176,957				378,000
						6,545,455				7,714,637				5,919,000
MIC Holding LLC (F/K/A Magpul Industries Corp.) (2%)*		Firearm Accessories Manufacturer and Distributor		Preferred Units (1,470 units)						1,470,000				3,114,000
				Common Units (30,000 units)						30,000				8,787,000
										1,500,000				11,901,000
Micross Solutions LLC (4%)*		Provider of Semiconductor Products and Services		Subordinated Note (12% Cash, 3% PIK, Due 06/18)		24,618,795				24,540,305				24,540,305
				Class A-2 Common Units (1,979,524 units)						2,019,693				1,884,000
						24,618,795				26,559,998				26,424,305
Motor Vehicle Software Corporation (3%)*		Provider of EVR Services		Subordinated Note (10% Cash, 0.5% PIK, Due 03/21)		20,270,406				19,958,931				19,958,931
				Class A Units (1,000,000 units)						1,087,460				1,396,000
						20,270,406				21,046,391				21,354,931
Nautic Partners VII, LP (0%)*(4)		Multi-Sector Holdings		0.4% Limited Partnership Interest						1,062,707				1,516,000
										1,062,707				1,516,000
Nomacorc, LLC (2%)*		Synthetic Wine Cork Producer		Subordinated Note (10% Cash, 2.3% PIK, Due 07/21)		20,993,317				20,703,887				16,852,000
				Limited Partnership Interest						2,153,274				—
						20,993,317				22,857,161				16,852,000
Orchid Underwriters Agency, LLC (1%)*		Insurance Underwriter		Subordinated Note (10% Cash, 1.5% PIK, Due 03/23)		2,601,517				2,549,517				2,549,517
				Subordinated Note (13.5% PIK, Due 03/24)		904,725				886,725				886,725
				Class A Preferred Units (15,000 units)						338,158				869,000
				Class A Common Units (15,000 units)						—				919,000
						3,506,242				3,774,400				5,224,242
Pike Corporation (0%)*		Provider of Energy Infrastructure Solutions		Subordinated Note (9% Cash, Due 09/24)		1,000,000				990,000				990,000
						1,000,000				990,000				990,000
PowerDirect Marketing, LLC (0%)*		Marketing Services		Senior Note (13% Cash, 2% PIK, Due 06/17)(6)		8,498,403				4,677,482				450,000
				Common Unit Purchase Warrants						590,200				—
						8,498,403				5,267,682				450,000
ProAmpac PG Borrower LLC (2%)*		Manufacturer of Flexible Packaging Products		Second Lien Term Note (9.6% Cash, Due 11/24)		15,000,000				14,779,774				14,779,774
						15,000,000				14,779,774				14,779,774

9

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2017
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
REP WWEX Acquisition Parent, LLC (2%)*		Third-Party Logistics Provider		Second Lien Term Note (9.8% Cash, Due 02/25)		$	15,000,000			$	14,779,723			$	14,779,723
						15,000,000				14,779,723				14,779,723
RMP Group, Inc. (1%)*		Provider of RCM Services to Hospitals and Physician Groups		Subordinated Note (10.5% Cash, 1% PIK, Due 09/22)		10,008,219				9,808,219				9,808,219
				Units (1,000 units)						1,000,000				1,000,000
						10,008,219				10,808,219				10,808,219
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)		6,956,121				6,849,145				6,849,145
				Series A Preferred Units (39 units)						3,654,253				2,444,000
						6,956,121				10,503,398				9,293,145
SCA Pharmaceuticals, LLC (0%)*		Provider of Pharmaceutical Products		Subordinated Note (10.1% Cash, Due 12/20)		3,000,000				2,715,480				2,715,480
						3,000,000				2,715,480				2,715,480
SCUF Gaming, Inc. (4%)*		Gaming Controller Manufacturer		Senior Notes (9.5% Cash, Due 12/21)		25,008,000				24,527,667				24,527,667
				Revolver Loan (9.5% Cash, Due 06/18)		1,500,000				1,500,000				1,500,000
				Common Stock (27,112 shares)						742,000				742,000
						26,508,000				26,769,667				26,769,667
Smile Brands, Inc. (3%)*		Dental Service Organization		Subordinated Notes (10% Cash, 2% PIK, Due 02/23)		22,454,231				22,035,700				22,035,700
				Class A Units (3,000 units)						3,000,000				1,952,000
						22,454,231				25,035,700				23,987,700
SPC Partners V, LP (0%)*(4)		Multi-Sector Holdings		0.7% Limited Partnership Interest						1,922,865				2,092,000
										1,922,865				2,092,000
Specialized Desanders, Inc. (2%)*(4)		Sand and Particulate Removal Equipment Provider for Oil and Gas Companies		Subordinated Note (12% Cash, 2% PIK, Due 03/20)		16,110,042				15,979,621				12,643,516
				Class C Partnership Units (2,000,000 units)						1,937,421				3,006,000
						16,110,042				17,917,042				15,649,516
Tate's Bake Shop (2%)*		Producer of Baked Goods		Subordinated Note (10% Cash, 3% PIK, Due 02/20)		10,817,982				10,695,615				10,695,615
				Limited Partnership Interest						925,000				1,308,000
						10,817,982				11,620,615				12,003,615
TCFI Merlin LLC ("Merlin") and TCFI CSG LLC ("CSG") (3%)*		Specialty Staffing Service Provider		Senior Notes (9.5% Cash Due 09/19)		20,528,936				20,204,484				20,204,484
				Limited Partnership Units - Merlin (500,500 units)						285,485				286,000
				Class A Units - CSG (100,000 units)						100,000				100,000
						20,528,936				20,589,969				20,590,484
The Cook & Boardman Group, LLC (2%)*		Distributor of Doors and Related Products		Subordinated Note (10% Cash, 2.5% PIK, Due 03/20)		14,933,072				14,761,757				14,761,757
				Class A Units (1,400,000 units)						1,400,000				2,483,000
						14,933,072				16,161,757				17,244,757
Tosca Services, LLC (4%)*		Perishable Food Supply Chain Management		Senior Note (10.5% Cash, Due 12/20)		29,250,000				28,952,542				28,952,542
						29,250,000				28,952,542				28,952,542
Trademark Global LLC (2%)*		Supplier to Mass Market Internet Retail		Subordinated Note (10% Cash, 1.3% PIK, Due 04/23)		14,800,000				14,590,484				14,590,484
				Class A Units (1,500,000 units)						1,500,000				1,500,000
				Class B Units (1,500,000 units)						—				—
						14,800,000				16,090,484				16,090,484
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)		10,176,685				9,976,856				9,976,856
				Second Lien Term Note - TP (11% Cash, 2% PIK, Due 11/22)(4)		9,014,272				8,834,426				8,685,393
				Common Units - Travelpro (2,000,000 units)						2,000,000				2,321,000
						19,190,957				20,811,282				20,983,249

10

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2017
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
United Biologics, LLC (2%)*		Allergy Immunotherapy		Senior Note (12% Cash, 2% PIK, Due 04/18)		$	12,823,343			$	12,823,342			$	12,823,342
				Class A-1 Common Units (18,818 units)						137,324				137,000
				Class A Common Units (177,935 units)						1,999,989				1,579,000
				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	</