Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

__________________________________________________________

Form 10-Q

__________________________________________________________

(Mark One)

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

For the quarterly period ended June 30, 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 August 2, 2017 was 47,745,674.

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TRIANGLE CAPITAL CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Consolidated Balance Sheet as of June 30, 2017 and Consolidated Balance Sheet as of December 31, 2016	3
	Unaudited Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2017 and 2016	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Six Months Ended June 30, 2017 and 2016	5
	Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2017 and 2016	6
	Unaudited Consolidated Schedule of Investments as of June 30, 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 Six Months Ended June 30, 2017	37
	Schedule of Investments in and Advances to Affiliates for the Year Ended December 31, 2016	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	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	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

	June 30, 2017				December 31, 2016
	(Unaudited)
Assets:
Investments at fair value:
Non-Control / Non-Affiliate investments (cost of $986,706,846 and $888,974,154 as of June 30, 2017 and December 31, 2016, respectively)	$	956,156,761			$	857,604,639
Affiliate investments (cost of $201,879,074 and $162,539,224 as of June 30, 2017 and December 31, 2016, respectively)	190,754,277				161,510,773
Control investments (cost of $63,696,899 and $45,418,113 as of June 30, 2017 and December 31, 2016, respectively)	22,401,769				18,791,769
Total investments at fair value	1,169,312,807				1,037,907,181
Cash and cash equivalents	64,999,516				107,087,663
Interest, fees and other receivables	9,155,222				10,189,788
Prepaid expenses and other current assets	1,933,748				1,659,570
Deferred financing fees	5,372,998				2,699,960
Property and equipment, net	96,422				106,494
Total assets	$	1,250,870,713			$	1,159,650,656
Liabilities:
Accounts payable and accrued liabilities	$	3,589,695			$	6,797,244
Interest payable	4,137,636				3,996,940
Taxes payable	—				489,691
Deferred income taxes	955,545				2,053,701
Borrowings under credit facility	125,315,242				127,011,475
Notes	163,076,680				162,755,381
SBA-guaranteed debentures payable	245,850,941				245,389,966
Total liabilities	542,925,739				548,494,398
Commitments and contingencies (Note 7)
Net Assets:
Common stock, $0.001 par value per share (150,000,000 shares authorized, 47,745,674 and 40,401,292 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively)	47,746				40,401
Additional paid-in capital	821,351,998				686,835,054
Net investment income in excess of (less than) distributions	(150,341		)		5,884,512
Accumulated realized losses	(32,361,001		)		(24,211,594		)
Net unrealized depreciation	(80,943,428		)		(57,392,115		)
Total net assets	707,944,974				611,156,258
Total liabilities and net assets	$	1,250,870,713			$	1,159,650,656
Net asset value per share	$	14.83			$	15.13

See accompanying notes.

3

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Operations

	Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
	June 30, 2017				June 30, 2016				June 30, 2017				June 30, 2016
Investment income:
Interest income:
Non-Control / Non-Affiliate investments	$	21,655,040			$	17,486,022			$	42,125,877			$	35,668,676
Affiliate investments	3,879,585				3,356,738				7,251,720				6,741,107
Control investments	310,611				267,298				580,147				460,914
Total interest income	25,845,236				21,110,058				49,957,744				42,870,697
Dividend income:
Non-Control / Non-Affiliate investments	980,004				48,589				1,261,233				(1,198,171		)
Affiliate investments	104,244				302,207				104,244				462,262
Control investments	—				300,000				—				300,000
Total dividend income	1,084,248				650,796				1,365,477				(435,909		)
Fee and other income:
Non-Control / Non-Affiliate investments	958,416				2,452,792				2,875,654				4,076,678
Affiliate investments	171,025				226,551				471,289				536,566
Control investments	100,000				100,000				200,000				200,000
Total fee and other income	1,229,441				2,779,343				3,546,943				4,813,244
Payment-in-kind interest income:
Non-Control / Non-Affiliate investments	2,153,265				2,731,689				4,792,647				5,653,293
Affiliate investments	757,471				1,094,522				1,495,937				2,083,735
Total payment-in-kind interest income	2,910,736				3,826,211				6,288,584				7,737,028
Interest income from cash and cash equivalents	144,106				55,452				245,789				92,670
Total investment income	31,213,767				28,421,860				61,404,537				55,077,730
Operating expenses:
Interest and other financing fees	7,113,827				6,764,654				14,024,130				13,283,224
Compensation expenses	3,575,406				4,096,472				7,825,819				13,546,965
General and administrative expenses	1,173,572				1,221,821				2,384,193				2,310,545
Total operating expenses	11,862,805				12,082,947				24,234,142				29,140,734
Net investment income	19,350,962				16,338,913				37,170,395				25,936,996
Realized and unrealized gains (losses) on investments and foreign currency borrowings:
Net realized gains (losses):
Non-Control / Non-Affiliate investments	5,258,024				5,621,127				(7,102,311		)		6,205,914
Affiliate investments	(88,472		)		(1,683,731		)		3,444,344				(1,682,304		)
Control investments	—				—				(4,491,440		)		—
Net realized gains (losses)	5,169,552				3,937,396				(8,149,407		)		4,523,610
Net unrealized depreciation:
Investments	(25,719,104		)		(13,529,964		)		(22,847,546		)		(10,445,641		)
Foreign currency borrowings	(524,975		)		(59,268		)		(703,767		)		(911,791		)
Net unrealized depreciation	(26,244,079		)		(13,589,232		)		(23,551,313		)		(11,357,432		)
Net realized and unrealized losses on investments and foreign currency borrowings	(21,074,527		)		(9,651,836		)		(31,700,720		)		(6,833,822		)
Tax benefit (provision)	(304,181		)		(250		)		(304,181		)		10,911
Net increase (decrease) in net assets resulting from operations	$	(2,027,746	)		$	6,686,827			$	5,165,494			$	19,114,085
Net investment income per share—basic and diluted	$	0.41			$	0.49			$	0.82			$	0.77
Net increase (decrease) in net assets resulting from operations per share—basic and diluted	$	(0.04	)		$	0.20			$	0.11			$	0.57
Dividends/distributions per share:
Regular quarterly dividends/distributions	$	0.45			$	0.45			$	0.90			$	0.99
Total dividends/distributions per share	$	0.45			$	0.45			$	0.90			$	0.99
Weighted average shares outstanding—basic and diluted	47,695,007				33,584,466				45,232,916				33,532,406

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 Depreciation				Total Net Assets
	Number of Shares			Par Value
Balance, December 31, 2015	33,375,126			$	33,375			$	549,242,439			$	16,127,141			$	(25,813,329	)		$	(31,221,871	)		$	508,367,755
Net investment income	—			—				—				25,936,996				—				—				25,936,996
Stock-based compensation	—			—				5,886,490				—				—				—				5,886,490
Realized gain (loss) on investments	—			—				—				—				4,523,610				(4,650,931		)		(127,321		)
Net unrealized loss on investments / foreign currency	—			—				—				—				—				(6,706,501		)		(6,706,501		)
Tax benefit	—			—				—				10,911				—				—				10,911
Dividends / distributions	82,848			82				1,590,073				(33,223,739		)		—				—				(31,633,584		)
Issuance of restricted stock	364,605			365				(365		)		—				—				—				—
Common stock withheld for payroll taxes upon vesting of restricted stock	(192,384	)		(192		)		(3,483,882		)		—				—				—				(3,484,074		)
Balance, June 30, 2016	33,630,195			$	33,630			$	553,234,755			$	8,851,309			$	(21,289,719	)		$	(42,579,303	)		$	498,250,672

 

	Common Stock							Additional Paid-In Capital				Investment Income in Excess of (Less Than) Distributions				Accumulated Realized Losses on Investments				Net Unrealized 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	—			—				—				37,170,395				—				—				37,170,395
Stock-based compensation	—			—				2,975,888				—				—				—				2,975,888
Realized gain (loss) on investments	—			—				—				—				(8,149,407		)		9,943,707				1,794,300
Net unrealized loss on investments / foreign currency	—			—				—				—				—				(33,495,020		)		(33,495,020		)
Tax provision	—			—				—				(304,181		)		—				—				(304,181		)
Dividends / distributions	91,366			91				1,637,467				(42,901,067		)		—				—				(41,263,509		)
Public offering of common stock	7,000,000			7,000				132,017,463				—				—				—				132,024,463
Issuance of restricted stock	360,470			361				(361		)		—				—				—				—
Common stock withheld for payroll taxes upon vesting of restricted stock	(107,454	)		(107		)		(2,113,513		)		—				—				—				(2,113,620		)
Balance, June 30, 2017	47,745,674			$	47,746			$	821,351,998			$	(150,341	)		$	(32,361,001	)		$	(80,943,428	)		$	707,944,974

See accompanying notes.

5

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows 

	Six Months Ended				Six Months Ended
	June 30, 2017				June 30, 2016
Cash flows from operating activities:
Net increase in net assets resulting from operations	$	5,165,494			$	19,114,085
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of portfolio investments	(250,992,360		)		(75,444,437		)
Repayments received/sales of portfolio investments	88,758,765				119,484,196
Loan origination and other fees received	3,830,367				1,622,991
Net realized (gain) loss on investments	8,149,407				(4,523,610		)
Net unrealized depreciation on investments	23,945,702				10,058,066
Net unrealized depreciation on foreign currency borrowings	703,767				911,791
Deferred income taxes	(1,098,156		)		387,577
Payment-in-kind interest accrued, net of payments received	(2,717,697		)		(1,993,156		)
Amortization of deferred financing fees	1,214,363				1,069,711
Accretion of loan origination and other fees	(2,234,150		)		(2,550,623		)
Accretion of loan discounts	(145,660		)		(199,697		)
Accretion of discount on SBA-guaranteed debentures payable	—				31,899
Depreciation expense	35,312				33,432
Stock-based compensation	2,975,888				5,886,490
Changes in operating assets and liabilities:
Interest, fees and other receivables	1,034,566				(4,533,464		)
Prepaid expenses and other current assets	(274,178		)		(956,646		)
Accounts payable and accrued liabilities	(3,207,549		)		(4,089,336		)
Interest payable	140,696				127,007
Taxes payable	(489,691		)		(735,498		)
Net cash provided by (used in) operating activities	(125,205,114		)		63,700,778
Cash flows from investing activities:
Purchases of property and equipment	(25,240		)		(47,254		)
Net cash used in investing activities	(25,240		)		(47,254		)
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	83,700,000				68,901,849
Repayments of credit facility	(86,100,000		)		(49,000,000		)
Financing fees paid	(3,105,127		)		(1,123,400		)
Net proceeds related to public offering of common stock	132,024,463				—
Common stock withheld for payroll taxes upon vesting of restricted stock	(2,113,620		)		(3,484,074		)
Cash dividends/distributions paid	(41,263,509		)		(31,633,584		)
Net cash provided by financing activities	83,142,207				8,660,791
Net increase (decrease) in cash and cash equivalents	(42,088,147		)		72,314,315
Cash and cash equivalents, beginning of period	107,087,663				52,615,418
Cash and cash equivalents, end of period	$	64,999,516			$	124,929,733
Supplemental disclosure of cash flow information:
Cash paid for interest	$	12,126,129			$	11,625,782
Summary of non-cash financing transactions:
Dividends/distributions paid through DRIP share issuances	$	1,637,558			$	1,590,155

See accompanying notes.

6

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments June 30, 2017
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
Non–Control / Non–Affiliate Investments:
ACA Holdings 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			13,611,225				13,611,225
				Class A Units (1,500,000 units)						901,026				3,382,000
						13,819,514				14,512,251				16,993,225
Aden & Anais Holdings, Inc. (0%)*		Baby Products		Common Stock (20,000 shares)						2,000,000				1,512,000
										2,000,000				1,512,000
Agilex Flavors & Fragrances, Inc. (3%)*		Custom Fragrance Producer		Subordinated Note (12% Cash, Due 11/21)		13,168,124				13,057,984				13,168,124
				Common Units (1,250 units)						1,250,000				7,096,000
						13,168,124				14,307,984				20,264,124
AM General, LLC (4%)*		Defense Manufacturing		Senior Note (8.3% Cash, Due 12/21)		9,500,000				9,362,397				9,455,000
				Second Lien Term Note (12.8% Cash, Due 06/22)		20,000,000				19,439,081				19,736,000
						29,500,000				28,801,478				29,191,000
Avantor Performance Materials Holdings, LLC (2%)*		Life Sciences and Advanced Technologies		Second Lien Term Note (9.3% Cash, Due 03/25)		15,000,000				14,853,217				15,081,000
						15,000,000				14,853,217				15,081,000
AVL Holdings, Inc. (0%)*		Manufacturer and Distributor for Independent Artists and Authors		Common Stock (138 shares)						1,300,000				1,759,000
										1,300,000				1,759,000
Baker Hill Acquisition, LLC (2%)*		Loan Origination Software Solutions Provider		Second Lien Term Notes (12.2% Cash, Due 03/21)		13,500,000				13,350,486				11,727,000
				Delayed Draw Term Note (12.2% Cash, Due 03/21)		1,500,000				1,500,000				1,500,000
				Limited Partnership Interest						1,498,500				155,000
						15,000,000				16,348,986				13,382,000
Cafe Enterprises, Inc. (2%)*		Restaurant		Second Lien Term Note (10% Cash, Due 03/19)		500,000				500,000				500,000
				Subordinated Note (7% Cash, 7% PIK, Due 09/19)(5)		14,378,444				13,999,989				10,139,000
				Series C Preferred Stock (10,000 shares)						1,000,000				—
						14,878,444				15,499,989				10,639,000
Captek Softgel International, Inc. (2%)*		Nutraceutical Manufacturer		Subordinated Note (10% Cash, 2.5% PIK, Due 06/21)		15,582,226				15,348,620				15,348,620
				Common Stock (15,000 shares)						1,500,000				1,500,000
						15,582,226				16,848,620				16,848,620
Carolina Beverage Group, LLC (0%)*		Beverage Manufacturing and Packaging		Class B Units (11,974 units)						119,735				957,000
										119,735				957,000
Centerfield Media Holding Company (0%)*		Digital Marketing		Common Shares (500 shares)						500,000				1,110,000
										500,000				1,110,000
CIBT Global, Inc. (1%)*		Provider of Mobility Services		Second Lien Term Note (8.8% Cash, Due 06/25)		10,000,000				9,900,000				9,900,000
						10,000,000				9,900,000				9,900,000
Community Intervention Services, Inc. (1%)*		Provider of Behavioral Health Services		Subordinated Note (7% Cash, 6% PIK, Due 01/21) (6)		19,642,239				17,732,558				10,391,000
						19,642,239				17,732,558				10,391,000
Constellis Holdings, LLC (1%)*		Provider or Security and Risk Services		Second Lien Term Note (10.2% Cash, Due 04/25)		5,000,000				4,926,558				4,926,558
						5,000,000				4,926,558				4,926,558
CPower Ultimate HoldCo, LLC (0%)*		Demand Response Business		Units (345,542 units)						345,542				345,542
										345,542				345,542
CWS Holding Company, LLC (0%)*		Manufacturer of Custom Windows and Sliding Doors		Class A Units (1,500,000 units)						1,500,000				1,927,000
										1,500,000				1,927,000
Data Source Holdings, LLC (0%)*		Print Supply Chain Management Services		Common Units (47,503 units)						1,000,000				1,027,000
										1,000,000				1,027,000

7

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) June 30, 2017
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
Del Real, LLC (2%)*		Hispanic Refrigerated Foods Company		Subordinated Note (11% Cash, Due 04/23)		$	14,000,000			$	13,743,172			$	13,743,172
				Class A Units (3,000,000 units)						3,000,000				3,477,000
						14,000,000				16,743,172				17,220,172
Dimora Brands, Inc. (2%)*		Hardware Designer and Distributor		Second Lien Term Note (11.2% Cash, Due 10/23)		12,500,000				12,279,932				12,525,000
						12,500,000				12,279,932				12,525,000
DLC Acquisition, LLC (6%)*		Staffing Firm		Senior Notes (10% Cash, Due 12/20)		22,250,000				22,032,962				22,032,962
				Senior Note (10% Cash, 2% PIK, Due 12/20)		17,100,429				16,926,727				16,926,727
						39,350,429				38,959,689				38,959,689
Dyno Acquiror, Inc. (1%)*		Sewing Products and Seasonal Decorative Products Supplier		Subordinated Note (10.5% Cash, 1.5% PIK, Due 08/20)		4,628,703				4,601,457				4,601,457
				Series A Units (600,000 units)						600,000				698,000
						4,628,703				5,201,457				5,299,457
Eckler's Holdings, Inc. (1%)*		Restoration Parts and Accessories for Classic Cars and Trucks		Subordinated Note (8% Cash, 7.5% PIK, Due 03/19)(5)		12,871,305				12,582,117				9,202,000
				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				—
						12,871,305				14,796,932				9,202,000
Fridababy Holdings, LLC (3%)*		Baby Products		Subordinated Notes (10.0% Cash, Due 10/21)		23,000,000				22,595,385				22,595,385
				Class B Units (4,500 units)						273,401				317,000
						23,000,000				22,868,786				22,912,385
FrontStream Holdings, LLC (2%)*		Payment and Donation Management Product Service Provider		Subordinated Note (13% Cash, Due 12/20)		13,375,000				13,266,643				11,804,000
				Series C-2 Preferred Shares (500 shares)						500,000				141,000
						13,375,000				13,766,643				11,945,000
Frontstreet Facility Solutions, Inc. (1%)*		Retail, Restaurant and Commercial Facilities Maintenance		Subordinated Note (11% Cash, 2% PIK, Due 07/18)		8,462,629				8,432,417				4,750,000
				Series A Convertible Preferred Stock (2,500 shares)						250,000				—
				Series B Convertible Preferred Stock (5,556 shares)						500,000				—
						8,462,629				9,182,417				4,750,000
Frozen Specialties, Inc. (2%)*		Frozen Foods Manufacturer		Subordinated Note (10% Cash, 4% PIK, Due 12/17)		13,951,763				13,951,763				13,951,763
						13,951,763				13,951,763				13,951,763
GST AutoLeather, Inc. (3%)*		Supplier of Automotive Interior Leather		Subordinated Note (11% Cash, 2% PIK, Due 01/21)		23,364,657				23,073,507				19,275,000
						23,364,657				23,073,507				19,275,000
Halo Branded Solutions, Inc. (2%)*		Supply Chain Services		Subordinated Notes (11% Cash, 1% PIK, Due 10/22)		10,462,805				10,257,520				10,257,520
				Class A1 Units (2,600 units)						2,600,000				3,743,000
						10,462,805				12,857,520				14,000,520
HKW Capital Partners IV, L.P. (0%)*(4)		Multi-Sector Holdings		0.6% Limited Partnership Interest						987,379				1,643,000
										987,379				1,643,000
HTC Borrower, LLC (4%)*		Hunting and Outdoor Products		Subordinated Notes (10% Cash, 3% PIK, Due 09/20)		26,527,346				26,281,681				26,281,681
						26,527,346				26,281,681				26,281,681
ICP Industrial, Inc. (3%)*		Coatings Formulator and Manufacturer		Subordinated Note (9.7% Cash, Due 04/22)		7,500,000				7,440,138				7,440,138
				Subordinated Notes (10% Cash, 1% PIK, Due 10/22)		8,129,065				7,996,331				7,996,331
				Subordinated Notes (14% PIK, Due 10/22)		6,156,839				6,105,385				6,105,385
				Class A Units (1,289 units)						1,751,483				1,699,000
						21,785,904				23,293,337				23,240,854
Inland Pipe Rehabilitation Holding Company LLC (0%)*		Cleaning and Repair Services		Membership Interest Purchase Warrant (3%)						853,500				1,262,000
										853,500				1,262,000
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				14,712,356				14,994,000
						15,000,000				14,712,356				14,994,000

8

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) June 30, 2017
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
Keystone Peer Review Organization, Inc. (0%)*		Health Care - Managed Care		Second Lien Term Note (10.3% Cash, Due 05/25)		$	3,000,000			$	2,941,233			$	2,941,233
						3,000,000				2,941,233				2,941,233
KidKraft, Inc. (4%)*		Children's Toy Manufacturer and Distributor		Second Lien Term Note (11% Cash, 1% PIK, Due 03/22)		27,806,755				27,312,088				27,312,088
						27,806,755				27,312,088				27,312,088
K-Square Restaurant Partners, LP (1%)*		Restaurant		Class A Units of Limited Partnership (2,000 units)						638,260				3,317,000
										638,260				3,317,000
Lakeview Health Holdings, Inc. (3%)*		Substance Abuse Treatment Service Provider		Senior Note (7.9% Cash, Due 12/21)		18,519,569				18,336,295				18,336,295
				Common Stock (2,000 shares)						2,000,000				1,342,000
						18,519,569				20,336,295				19,678,295
Lighting Retrofit International, LLC (3%)*		Energy Services Contracting Firm		Senior Secured Term Note (10.6% Cash, Due 06/22)		18,500,000				18,176,250				18,176,250
				Series B Preferred Units (238,095 units)						300,000				300,000
						18,500,000				18,476,250				18,476,250
Media Storm, LLC (1%)*		Marketing Services		Subordinated Note (10% Cash, Due 08/19)		6,545,455				6,541,519				5,626,000
				Membership Units (1,216,204 units)						1,176,957				439,000
						6,545,455				7,718,476				6,065,000
MIC Holding LLC (2%)*		Firearm Accessories Manufacturer and Distributor		Preferred Units (1,470 units)						1,470,000				3,221,000
				Common Units (30,000 units)						30,000				8,463,000
										1,500,000				11,684,000
Micross Solutions LLC (4%)*		Provider of Semiconductor Products and Services		Subordinated Note (12% Cash, 3% PIK, Due 06/18)		24,805,960				24,742,254				24,742,254
				Class A-2 Common Units (1,979,524 units)						2,019,693				2,266,000
						24,805,960				26,761,947				27,008,254
Motor Vehicle Software Corporation (3%)*		Provider of EVR Services		Subordinated Note (10% Cash, 0.5% PIK, Due 03/21)		20,296,026				20,000,623				20,000,623
				Class A Units (1,000,000 units)						1,087,460				1,450,000
						20,296,026				21,088,083				21,450,623
Nautic Partners VII, LP (0%)*(4)		Multi-Sector Holdings		0.4% Limited Partnership Interest						1,180,910				1,715,000
										1,180,910				1,715,000
Nomacorc, LLC (2%)*		Synthetic Wine Cork Producer		Subordinated Note (10% Cash, 2.3% PIK, Due 07/21)		21,112,716				20,837,158				17,120,000
				Limited Partnership Interest						2,158,548				—
						21,112,716				22,995,706				17,120,000
Orchid Underwriters Agency, LLC (1%)*		Insurance Underwriter		Subordinated Note (10% Cash, 1.5% PIK, Due 03/23)		2,611,381				2,560,989				2,560,989
				Subordinated Note (13.5% PIK, Due 03/24)		935,599				917,995				917,995
				Class A Preferred Units (15,000 units)						338,158				897,000
				Class A Common Units (15,000 units)						—				1,142,000
						3,546,980				3,817,142				5,517,984
Pike Corporation (0%)*		Provider of Energy Infrastructure Solutions		Subordinated Note (9.1% Cash, Due 09/24)		1,000,000				990,237				1,005,000
						1,000,000				990,237				1,005,000
ProAmpac PG Borrower LLC (2%)*		Manufacturer of Flexible Packaging Products		Second Lien Term Note (9.6% Cash, Due 11/24)		15,000,000				14,784,661				15,079,000
						15,000,000				14,784,661				15,079,000
REP WWEX Acquisition Parent, LLC (2%)*		Third-Party Logistics Provider		Second Lien Term Note (9.8% Cash, Due 02/25)		15,000,000				14,784,561				15,015,000
						15,000,000				14,784,561				15,015,000
RMP Group, Inc. (2%)*		Provider of RCM Services to Hospitals and Physician Groups		Subordinated Note (10.5% Cash, 1% PIK, Due 09/22)		10,033,171				9,840,004				9,840,004
				Units (1,000 units)						1,000,000				1,000,000
						10,033,171				10,840,004				10,840,004
RockYou, Inc. (0%)*		Mobile Game Advertising Network		Common Stock (67,585 shares)						111,000				111,000
										111,000				111,000

9

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) June 30, 2017
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
Rotolo Consultants, Inc. (1%)*		Landscape Services		Subordinated Note (11% Cash, 3% PIK, Due 08/21)		$	7,516,932			$	7,404,497			$	7,404,497
				Series A Preferred Units (39 units)						3,654,253				2,738,000
						7,516,932				11,058,750				10,142,497
SCA Pharmaceuticals, LLC (1%)*		Provider of Pharmaceutical Products		Subordinated Note (10.2% Cash, Due 12/20)		6,500,000				6,383,583				6,383,583
						6,500,000				6,383,583				6,383,583
Schweiger Dermatology Group, LLC (3%)*		Provider of Dermatology Services		Senior Notes (9.7% Cash, Due 06/22)		20,000,000				19,625,000				19,625,000
						20,000,000				19,625,000				19,625,000
SCUF Gaming, Inc. (4%)*		Gaming Controller Manufacturer		Senior Notes (9.6% Cash, Due 12/21)		25,008,000				24,547,965				24,547,965
				Revolver Loan (9.6% 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				26,789,965				26,789,965
Smile Brands, Inc. (3%)*		Dental Service Organization		Subordinated Notes (10% Cash, 2% PIK, Due 02/23)		22,567,750				22,162,157				22,162,157
				Class A Units (3,000 units)						3,000,000				2,081,000
						22,567,750				25,162,157				24,243,157
SPC Partners V, LP (0%)*(4)		Multi-Sector Holdings		0.7% Limited Partnership Interest						2,155,116				2,309,000
										2,155,116				2,309,000
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				15,993,111				12,969,054
				Class C Partnership Units (2,000,000 units)						1,937,421				3,376,000
						16,110,042				17,930,532				16,345,054
Tate's Bake Shop (2%)*		Producer of Baked Goods		Subordinated Note (10% Cash, 3% PIK, Due 02/20)		10,900,018				10,786,521				10,786,521
				Limited Partnership Interest						925,000				1,503,000
						10,900,018				11,711,521				12,289,521
Tax Advisors Group, LLC (2%)*		Tax Advisory Services		Subordinated Note (10% Cash, 2% PIK, Due 12/22)		12,403,444				12,155,444				12,155,444
				Class A Units (386 units)						1,458,824				1,458,824
						12,403,444				13,614,268				13,614,268
TCFI Merlin LLC ("Merlin") and TCFI CSG LLC ("CSG") (3%)*		Specialty Staffing Service Provider		Senior Notes (9.6% Cash Due 09/19)		20,716,726				20,421,314				20,421,314
				Limited Partnership Units - Merlin (500,500 units)						285,485				286,000
				Class A Units - CSG (100,000 units)						100,000				255,000
						20,716,726				20,806,799				20,962,314
The Cook & Boardman Group, LLC (2%)*		Distributor of Doors and Related Products