ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 06-1798488 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
3700 Glenwood Avenue, Suite 530 Raleigh, North Carolina | 27612 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
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. | ¨ |
Page | ||
PART I – FINANCIAL INFORMATION | ||
Item 1. | ||
Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2017 and 2016 | ||
Unaudited Consolidated Schedule of Investments as of June 30, 2017 | ||
Unaudited Schedule of Investments in and Advances to Affiliates for the Six Months Ended June 30, 2017 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
June 30, 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 |
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 |
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 |
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 |
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 | |||||||||||||||
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 | ||||||||||||||
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 | |||||||||||||||
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 |