Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

__________________________________________________________

Form 10-Q

__________________________________________________________

(Mark One)

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

For the quarterly period ended September 30, 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 November 1, 2017 was 47,740,832.

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TRIANGLE CAPITAL CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Consolidated Balance Sheet as of September 30, 2017 and Consolidated Balance Sheet as of December 31, 2016	3
	Unaudited Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2017 and 2016	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Nine Months Ended September 30, 2017 and 2016	5
	Unaudited Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2017 and 2016	6
	Unaudited Consolidated Schedule of Investments as of September 30, 2017	7
	Consolidated Schedule of Investments as of December 31, 2016	14
	Notes to Unaudited Consolidated Financial Statements	21
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	46
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	62
Item 4.	Controls and Procedures	62
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	63
Item 1A.	Risk Factors	63
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 3.	Defaults Upon Senior Securities	63
Item 4.	Mine Safety Disclosures	63
Item 5.	Other Information	63
Item 6.	Exhibits	64
Signatures		65
Exhibits

2

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

TRIANGLE CAPITAL CORPORATION

Consolidated Balance Sheets

	September 30, 2017				December 31, 2016
	(Unaudited)
Assets:
Investments at fair value:
Non-Control / Non-Affiliate investments (cost of $998,836,068 and $888,974,154 as of September 30, 2017 and December 31, 2016, respectively)	$	908,181,226			$	857,604,639
Affiliate investments (cost of $153,091,223 and $162,539,224 as of September 30, 2017 and December 31, 2016, respectively)	146,607,453				161,510,773
Control investments (cost of $86,861,024 and $45,418,113 as of September 30, 2017 and December 31, 2016, respectively)	36,403,000				18,791,769
Total investments at fair value	1,091,191,679				1,037,907,181
Cash and cash equivalents	81,003,756				107,087,663
Interest, fees and other receivables	9,744,381				10,189,788
Prepaid expenses and other current assets	1,827,994				1,659,570
Deferred financing fees	5,439,945				2,699,960
Property and equipment, net	91,195				106,494
Total assets	$	1,189,298,950			$	1,159,650,656
Liabilities:
Accounts payable and accrued liabilities	$	5,540,240			$	6,797,244
Interest payable	1,723,664				3,996,940
Taxes payable	—				489,691
Deferred income taxes	1,196,745				2,053,701
Borrowings under credit facility	141,118,837				127,011,475
Notes	163,241,179				162,755,381
SBA-guaranteed debentures payable	246,084,869				245,389,966
Total liabilities	558,905,534				548,494,398
Commitments and contingencies (Note 8)
Net Assets:
Common stock, $0.001 par value per share (150,000,000 shares authorized, 47,740,832 and 40,401,292 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively)	47,741				40,401
Additional paid-in capital	822,780,495				686,835,054
Net investment income in excess of (less than) distributions	(4,483,783		)		5,884,512
Accumulated realized losses	(41,242,051		)		(24,211,594		)
Net unrealized depreciation	(146,708,986		)		(57,392,115		)
Total net assets	630,393,416				611,156,258
Total liabilities and net assets	$	1,189,298,950			$	1,159,650,656
Net asset value per share	$	13.20			$	15.13

See accompanying notes.

3

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Operations

	Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
	September 30, 2017				September 30, 2016				September 30, 2017				September 30, 2016
Investment income:
Interest income:
Non-Control / Non-Affiliate investments	$	20,629,534			$	17,270,300			$	62,755,411			$	52,938,976
Affiliate investments	3,329,256				3,380,867				10,580,976				10,121,974
Control investments	281,147				303,708				861,294				764,622
Total interest income	24,239,937				20,954,875				74,197,681				63,825,572
Dividend income:
Non-Control / Non-Affiliate investments	57,515				167,468				1,318,748				(1,030,703		)
Affiliate investments	137,470				244,233				241,714				706,495
Control investments	—				—				—				300,000
Total dividend income	194,985				411,701				1,560,462				(24,208		)
Fee and other income:
Non-Control / Non-Affiliate investments	2,104,631				1,585,403				4,980,285				5,662,081
Affiliate investments	479,802				319,289				951,091				855,855
Control investments	107,292				110,000				307,292				310,000
Total fee and other income	2,691,725				2,014,692				6,238,668				6,827,936
Payment-in-kind interest income:
Non-Control / Non-Affiliate investments	1,963,525				2,719,831				6,756,172				8,373,124
Affiliate investments	622,613				1,175,899				2,118,550				3,259,634
Total payment-in-kind interest income	2,586,138				3,895,730				8,874,722				11,632,758
Interest income from cash and cash equivalents	175,273				135,459				421,062				228,129
Total investment income	29,888,058				27,412,457				91,292,595				82,490,187
Operating expenses:
Interest and other financing fees	7,394,241				6,757,718				21,418,371				20,040,942
Compensation expenses	4,323,708				3,963,797				12,149,527				17,510,762
General and administrative expenses	1,019,192				859,785				3,403,385				3,170,330
Total operating expenses	12,737,141				11,581,300				36,971,283				40,722,034
Net investment income	17,150,917				15,831,157				54,321,312				41,768,153
Realized and unrealized gains (losses) on investments and foreign currency borrowings:
Net realized gains (losses):
Non-Control / Non-Affiliate investments	4,066,263				(11,213,561		)		(3,036,048		)		(5,007,647		)
Affiliate investments	(4,443,680		)		2,106				(999,336		)		(1,680,198		)
Control investments	(8,503,633		)		—				(12,995,073		)		—
Net realized losses	(8,881,050		)		(11,211,455		)		(17,030,457		)		(6,687,845		)
Net unrealized appreciation (depreciation):
Non-Control / Non-Affiliate investments	(64,601,974		)		11,731,534				(70,083,204		)		(596,458		)
Affiliate investments	(2,313,261		)		(303,939		)		(11,651,017		)		1,130,412
Control investments	2,047,411				(8,546,464		)		(5,981,149		)		(8,098,464		)
Net unrealized appreciation (depreciation) on investments	(64,867,824		)		2,881,131				(87,715,370		)		(7,564,510		)
Foreign currency borrowings	(897,734		)		342,409				(1,601,501		)		(569,382		)
Net unrealized appreciation (depreciation)	(65,765,558		)		3,223,540				(89,316,871		)		(8,133,892		)
Net realized and unrealized losses on investments and foreign currency borrowings	(74,646,608		)		(7,987,915		)		(106,347,328		)		(14,821,737		)
Tax benefit (provision)	(985		)		36,431				(305,166		)		47,342
Net increase (decrease) in net assets resulting from operations	$	(57,496,676	)		$	7,879,673			$	(52,331,182	)		$	26,993,758
Net investment income per share—basic and diluted	$	0.36			$	0.42			$	1.18			$	1.19
Net increase (decrease) in net assets resulting from operations per share—basic and diluted	$	(1.20	)		$	0.21			$	(1.14	)		$	0.77
Dividends/distributions per share:
Regular quarterly dividends/distributions	$	0.45			$	0.45			$	1.35			$	1.44
Total dividends/distributions per share	$	0.45			$	0.45			$	1.35			$	1.44
Weighted average shares outstanding—basic and diluted	47,743,990				38,115,449				46,079,139				35,199,704

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 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	—			—				—				41,768,153				—				—				41,768,153
Stock-based compensation	—			—				7,502,500				—				—				—				7,502,500
Realized gain (loss) on investments	—			—				—				—				(6,687,845		)		7,532,502				844,657
Net unrealized loss on investments / foreign currency	—			—				—				—				—				(15,666,394		)		(15,666,394		)
Tax benefit	—			—				—				47,342				—				—				47,342
Dividends / distributions	120,562			120				2,325,851				(51,389,199		)		—				—				(49,063,228		)
Public offering of common stock	6,742,362			6,742				129,129,554				—				—				—				129,136,296
Issuance of restricted stock	364,605			365				(365		)		—				—				—				—
Common stock withheld for payroll taxes upon vesting of restricted stock	(197,252	)		(197		)		(3,581,675		)		—				—				—				(3,581,872		)
Balance, September 30, 2016	40,405,403			$	40,405			$	684,618,304			$	6,553,437			$	(32,501,174	)		$	(39,355,763	)		$	619,355,209

 

	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	—			—				—				54,321,312				—				—				54,321,312
Stock-based compensation	—			—				4,499,374				—				—				—				4,499,374
Realized gain (loss) on investments	—			—				—				—				(17,030,457		)		18,724,566				1,694,109
Net unrealized loss on investments / foreign currency	—			—				—				—				—				(108,041,437		)		(108,041,437		)
Tax provision	—			—				—				(305,166		)		—				—				(305,166		)
Dividends / distributions	91,366			91				1,637,467				(64,384,441		)		—				—				(62,746,883		)
Public offering of common stock	7,000,000			7,000				131,989,144				—				—				—				131,996,144
Issuance of restricted stock	360,470			361				(361		)		—				—				—				—
Common stock withheld for payroll taxes upon vesting of restricted stock	(112,296	)		(112		)		(2,180,183		)		—				—				—				(2,180,295		)
Balance, September 30, 2017	47,740,832			$	47,741			$	822,780,495			$	(4,483,783	)		$	(41,242,051	)		$	(146,708,986	)		$	630,393,416

See accompanying notes.

5

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows 

	Nine Months Ended				Nine Months Ended
	September 30, 2017				September 30, 2016
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$	(52,331,182	)		$	26,993,758
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of portfolio investments	(391,502,625		)		(163,867,651		)
Repayments received/sales of portfolio investments	231,730,067				182,153,894
Loan origination and other fees received	5,733,890				3,205,460
Net realized loss on investments	17,030,457				6,687,845
Net unrealized depreciation on investments	88,572,326				9,525,827
Net unrealized depreciation on foreign currency borrowings	1,601,501				569,382
Deferred income taxes	(856,956		)		(1,961,317		)
Payment-in-kind interest accrued, net of payments received	(519,326		)		(4,177,550		)
Amortization of deferred financing fees	1,857,810				1,644,826
Accretion of loan origination and other fees	(3,863,096		)		(3,676,003		)
Accretion of loan discounts	(466,191		)		(307,081		)
Accretion of discount on SBA-guaranteed debentures payable	—				31,899
Depreciation expense	51,275				52,369
Stock-based compensation	4,499,374				7,502,500
Changes in operating assets and liabilities:
Interest, fees and other receivables	445,407				(2,074,332		)
Prepaid expenses and other current assets	(168,424		)		(743,114		)
Accounts payable and accrued liabilities	(1,257,004		)		(2,827,297		)
Interest payable	(2,273,276		)		(2,176,980		)
Taxes payable	(489,691		)		(735,498		)
Net cash provided by (used in) operating activities	(102,205,664		)		55,820,937
Cash flows from investing activities:
Purchases of property and equipment	(35,976		)		(69,177		)
Net cash used in investing activities	(35,976		)		(69,177		)
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	106,700,000				68,901,849
Repayments of credit facility	(94,194,139		)		(109,300,000		)
Financing fees paid	(3,417,094		)		(1,123,400		)
Net proceeds related to public offering of common stock	131,996,144				129,136,296
Common stock withheld for payroll taxes upon vesting of restricted stock	(2,180,295		)		(3,581,872		)
Cash dividends/distributions paid	(62,746,883		)		(49,063,228		)
Net cash provided by financing activities	76,157,733				59,969,645
Net increase (decrease) in cash and cash equivalents	(26,083,907		)		115,721,405
Cash and cash equivalents, beginning of period	107,087,663				52,615,418
Cash and cash equivalents, end of period	$	81,003,756			$	168,336,823
Supplemental disclosure of cash flow information:
Cash paid for interest	$	20,955,808			$	19,929,857
Summary of non-cash financing transactions:
Dividends/distributions paid through DRIP share issuances	$	1,637,558			$	2,325,971

See accompanying notes.

6

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments September 30, 2017
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
Non–Control / Non–Affiliate Investments:
Access Medical Acquisition, Inc. (3%)*		Operator of Primary Care Clinics		Subordinated Notes (10% Cash, 2% PIK, Due 01/22)		$	13,819,514			$	13,620,530			$	13,620,530
				Class A Units (1,500,000 units)						901,026				2,610,000
						13,819,514				14,521,556				16,230,530
Aden & Anais Holdings, Inc. (0%)*		Baby Products		Common Stock (20,000 shares)						2,000,000				1,117,000
										2,000,000				1,117,000
AM General, LLC (5%)*		Defense Manufacturing		Senior Note (LIBOR + 7.25%, 8.5% Cash, Due 12/21)(8)		9,500,000				9,368,788				9,410,000
				Second Lien Term Note (LIBOR +11.75%, 13.0% Cash, Due 06/22)(8)		20,000,000				19,459,561				19,641,000
						29,500,000				28,828,349				29,051,000
Avantor Performance Materials Holdings, LLC (2%)*		Life Sciences and Advanced Technologies		Second Lien Term Note (LIBOR + 8.25%, 9.5% Cash, Due 03/25)(8)		15,000,000				14,856,508				14,976,000
						15,000,000				14,856,508				14,976,000
AVL Holdings, Inc. (0%)*		Manufacturer and Distributor for Independent Artists and Authors		Common Stock (138 shares)						1,300,000				2,049,000
										1,300,000				2,049,000
Baker Hill Acquisition, LLC (2%)*		Loan Origination Software Solutions Provider		Second Lien Term Notes (LIBOR + 11.0%, 12.3% Cash, Due 03/21)(8)		13,500,000				13,358,951				11,000,000
				Delayed Draw Term Note (LIBOR + 11.0%, 12.3% Cash, Due 03/21)(8)		1,500,000				1,481,072				1,481,072
				Limited Partnership Interest						1,498,500				103,000
						15,000,000				16,338,523				12,584,072
Cafe Enterprises, Inc. (1%)*		Restaurant		Second Lien Term Note (Prime + 5.75%, 10.0% Cash, Due 03/19)(6)(8)		2,000,000				1,990,411				1,454,000
				Subordinated Note (7% Cash, 7% PIK, Due 09/19)(6)		14,632,863				13,745,570				2,801,000
				Series C Preferred Stock (10,000 shares)						1,000,000				—
						16,632,863				16,735,981				4,255,000
Captek Softgel International, Inc. (5%)*		Nutraceuticals Manufacturer		Subordinated Note (10% Cash, 1.5% PIK, Due 01/23)		30,695,433				30,405,827				30,405,827
				Common Stock (38,023 shares)						3,957,697				4,059,000
						30,695,433				34,363,524				34,464,827
Carolina Beverage Group, LLC (0%)*		Beverage Manufacturing and Packaging		Class B Units (11,974 units)						119,735				1,183,000
										119,735				1,183,000
Centerfield Media Holding Company (0%)*		Digital Marketing		Common Shares (500 shares)						500,000				1,121,000
										500,000				1,121,000
CIBT Global, Inc. (2%)*		Provider of Mobility Services		Second Lien Term Note (LIBOR + 7.75%, 9.1% Cash, Due 06/25)(8)		10,000,000				9,902,191				9,840,000
						10,000,000				9,902,191				9,840,000
CIS Acquisition, LLC (0%)*		Secure Communications and Computing Solutions Provider		Units (1.09 units)						277,538				277,538
										277,538				277,538
Community Intervention Services, Inc. (1%)*		Provider of Behavioral Health Services		Subordinated Note (7% Cash, 6% PIK, Due 01/21) (6)		20,294,798				17,732,558				3,717,000
						20,294,798				17,732,558				3,717,000
Constellis Holdings, LLC (1%)*		Provider of Security and Risk Management Services		Second Lien Term Note (LIBOR + 9.0%, 10.3% Cash, Due 04/25)(8)		5,000,000				4,928,155				4,903,000
						5,000,000				4,928,155				4,903,000
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				1,624,000
										1,500,000				1,624,000

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) September 30, 2017
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
Data Source Holdings, LLC (0%)*		Print Supply Chain Management Services		Common Units (47,503 units)						$	1,000,000			$	882,000
										1,000,000				882,000
Del Real, LLC (3%)*		Hispanic Refrigerated Foods Company		Subordinated Note (11% Cash, Due 04/23)		$	14,000,000			13,751,325				13,751,325
				Class A Units (3,000,000 units)						3,000,000				3,442,000
						14,000,000				16,751,325				17,193,325
Dimora Brands, Inc. (3%)*		Hardware Designer and Distributor		Second Lien Term Note (LIBOR + 8.5%, 9.7% Cash, Due 08/25)(8)		20,000,000				19,600,000				19,600,000
						20,000,000				19,600,000				19,600,000
DLC Acquisition, LLC (6%)*		Staffing Firm		Senior Notes (LIBOR + 8.0%, 10% Cash, Due 12/20)(8)		21,978,125				21,785,931				21,785,931
				Senior Note (10% Cash, 2% PIK, Due 12/20)		17,187,831				17,024,644				17,024,644
						39,165,956				38,810,575				38,810,575
Dyno Acquiror, Inc. (1%)*		Sewing Products and Seasonal Decorative Products Supplier		Subordinated Note (10.5% Cash, 1.5% PIK, Due 08/20)		4,646,082				4,623,967				4,623,967
				Series A Units (600,000 units)						600,000				591,000
						4,646,082				5,223,967				5,214,967
Eckler's Holdings, Inc. (0%)*		Restoration Parts and Accessories for Classic Cars and Trucks		Subordinated Note (7.7% Cash, Due 06/19)(6)		13,941,700				13,242,814				3,126,000
				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				—
						13,941,700				15,457,629				3,126,000
Fridababy Holdings, LLC (4%)*		Baby Products		Subordinated Notes (LIBOR + 9.0%, 10.3% Cash, Due 10/21)(8)		23,000,000				22,614,777				22,614,777
				Class B Units (4,500 units)						273,401				288,000
						23,000,000				22,888,178				22,902,777
FrontStream Holdings, LLC (1%)*		Payment and Donation Management Product Service Provider		Subordinated Note (LIBOR + 6.0%, 7.3% Cash, Due 12/20)(6)(8)		14,624,745				14,272,931				7,315,000
				Series C-2 Preferred Shares (500 shares)						500,000				—
						14,624,745				14,772,931				7,315,000
Frozen Specialties, Inc. (2%)*		Frozen Foods Manufacturer		Subordinated Note (10% Cash, 4% PIK, Due 3/18)		14,094,381				14,094,381				14,094,381
						14,094,381				14,094,381				14,094,381
GST AutoLeather, Inc. (0%)*		Supplier of Automotive Interior Leather		Subordinated Note (11% Cash, 2% PIK, Due 01/21)(6)		24,140,883				23,073,507				2,450,000
						24,140,883				23,073,507				2,450,000
Halo Branded Solutions, Inc. (2%)*		Supply Chain Services		Subordinated Notes (11% Cash, 1% PIK, Due 10/22)		10,490,124				10,292,192				10,292,192
				Class A1 Units (2,600 units)						2,600,000				4,034,000
						10,490,124				12,892,192				14,326,192
HemaSource, Inc. (2%)*		Medical Products Distributor		Subordinated Note (9.5% Cash, 1.5% PIK, Due 01/24)		10,030,833				9,836,481				9,836,481
				Class A Units (1,000,000 units)						1,000,000				1,000,000
						10,030,833				10,836,481				10,836,481
HKW Capital Partners IV, L.P. (0%)*(4)		Multi-Sector Holdings		0.6% Limited Partnership Interest						922,279				1,533,000
										922,279				1,533,000
HTC Borrower, LLC (4%)*		Hunting and Outdoor Products		Subordinated Notes (10% Cash, 3% PIK, Due 09/20)		26,730,722				26,501,283				26,501,283
						26,730,722				26,501,283				26,501,283
ICP Industrial, Inc. (4%)*		Coatings Formulator and Manufacturer		Second Lien Term Note (LIBOR + 8.5%, 9.7% Cash, Due 04/22)(8)		7,500,000				7,442,511				7,442,511
				Subordinated Notes (10% Cash, 1% PIK, Due 10/22)		8,149,614				8,021,608				8,021,608
				Subordinated Notes (14% PIK, Due 10/22)		6,374,723				6,325,018				6,325,018
				Class A Units (1,289 units)						1,751,483				1,643,000
						22,024,337				23,540,620				23,432,137
IDERA, Inc. (2%)*		Software Provider		Second Lien Term Note (LIBOR + 9.0%, 10.2% Cash, Due 06/25)(8)		10,000,000				9,853,115				9,853,115
						10,000,000				9,853,115				9,853,115

8

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) September 30, 2017
Portfolio Company		Industry		Type of Investment(1)(2)(7)		Principal Amount				Cost				Fair Value(3)
Inland Pipe Rehabilitation Holding Company LLC (0%)*		Cleaning and Repair Services		Membership Interest Purchase Warrant (3%)						$	853,500			$	596,000
										853,500				596,000
Integrated Efficiency Solutions, Inc. (3%)*		Energy Services Contracting Firm		Senior Secured Term Note (LIBOR + 9.25%, 10.6% Cash, Due 06/22)(8)		$	18,500,000			18,188,844				18,188,844
				Series B Preferred Units (238,095 units)						300,000				300,000
						18,500,000				18,488,844				18,488,844
IPS Structural Adhesives Holdings, Inc. (2%)*		Specialty Adhesives and Plumbing Products Manufacturer		Second Lien Term Note (LIBOR + 9.5%, 10.7% Cash, Due 12/24)(8)		15,000,000				14,718,778				14,903,000
						15,000,000				14,718,778				14,903,000
Keystone Peer Review Organization, Inc. (0%)*		Healthcare - Managed Care		Second Lien Term Note (LIBOR + 9.25%, 10.6% Cash, Due 05/25)(8)		3,000,000				2,942,497				2,927,000
						3,000,000				2,942,497				2,927,000
KidKraft, Inc. (4%)*		Children's Toy Manufacturer and Distributor		Second Lien Term Note (11% Cash, 1% PIK, Due 03/22)		27,876,081				27,401,586				27,401,586
						27,876,081				27,401,586				27,401,586
K-Square Restaurant Partners, LP (0%)*		Restaurant		Class A Units of Limited Partnership (2,000 units)						638,260				2,759,000
										638,260				2,759,000
Lakeview Health Holdings, Inc. (3%)*		Substance Abuse Treatment Service Provider		Senior Note (LIBOR + 6.75%, 8.1% Cash, Due 12/21)(8)		18,473,037				18,298,370				18,298,370
				Common Stock (2,000 shares)						2,000,000				1,149,000
						18,473,037				20,298,370				19,447,370
Media Storm, LLC (1%)*		Marketing Services		Subordinated Note (10% Cash, Due 08/19)(6)		6,709,091				6,541,519				3,571,000
				Membership Units (1,216,204 units)						1,176,957				—
						6,709,091				7,718,476				3,571,000
MIC Holding LLC (1%)*		Firearm Accessories Manufacturer and Distributor		Preferred Units (1,470 units)						1,470,000				3,333,000
				Common Units (30,000 units)						30,000				5,572,000
										1,500,000				8,905,000
Micross Solutions LLC (3%)*		Provider of Semiconductor Products and Services		Senior Note (LIBOR + 5.50%, 6.8% Cash, Due 08/23)(8)		15,000,000				14,820,000				14,820,000
				Class A-2 Common Units (1,979,524 units)						2,019,693				2,246,000
						15,000,000				16,839,693				17,066,000
Motor Vehicle Software Corporation (3%)*		Provider of EVR Services		Subordinated Note (10% Cash, 0.5% PIK, Due 03/21)		20,321,960				20,043,031				20,043,031
				Class A Units (1,000,000 units)						1,087,460				1,526,000
						20,321,960				21,130,491				21,569,031
Nautic Partners VII, LP (0%)*(4)		Multi-Sector Holdings		0.4% Limited Partnership Interest						1,180,910				1,748,000
										1,180,910				1,748,000
Nomacorc, LLC (3%)*		Synthetic Wine Cork Producer		Subordinated Note (10% Cash, 2.3% PIK, Due 07/21)		21,234,114				20,972,775				17,400,000
				Limited Partnership Interest						2,161,185				—
						21,234,114				23,133,960				17,400,000
Orchid Underwriters Agency, LLC (1%)*		Insurance Underwriter		Subordinated Note (10% Cash, 1.5% PIK, Due 03/23)		2,127,072				2,086,080				2,086,080
				Subordinated Note (13.5% PIK, Due 03/24)		785,362				770,531				770,531
				Class A Preferred Units (15,000 units)						338,158				927,000
				Class A Common Units (15,000 units)						—				1,153,000
						2,912,434				3,194,769				4,936,611
ProAmpac PG Borrower LLC (2%)*		Manufacturer of Flexible Packaging Products		Second Lien Term Note (LIBOR + 8.5%, 9.8% Cash, Due 11/24)(8)		15,000,000				14,789,664				14,982,000
						15,000,000				14,789,664				14,982,000
Q International Courier, LLC (2%)*		Third-Party Logistics Provider		Second Lien Term Note (LIBOR + 8.25%, 9.6% Cash, Due 09/25)(8)		14,000,000				13,720,000				13,720,000
						14,000,000				13,720,000				13,720,000

9

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TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) September 30, 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 (LIBOR + 8.75%, 10.2% Cash, Due 02/25)(8)		$	15,000,000			$	14,789,517			$	14,920,000
						15,000,000				14,789,517				14,920,000
RMP Group, Inc. (2%)*		Provider of RCM Services to Hospitals and Physician Groups		Subordinated Note (10.5% Cash, 1% PIK, Due 09/22)		10,058,460				9,872,305				9,872,305
				Units (1,000 units)						1,000,000				706,000
						10,058,460				10,872,305				10,578,305
RockYou, Inc. (0%)*		Mobile Game Advertising Network		Common Stock (67,585 shares)						111,000				111,000
										111,000				111,000
Rotolo Consultants, Inc. (2%)*		Landscape Services		Subordinated Note (11% Cash, 3% PIK, Due 08/21)		7,574,709				7,467,551				7,467,551
				Series A Preferred Units (39 units)						3,654,253				5,691,000
						7,574,709				11,121,804				13,158,551
SCA Pharmaceuticals, LLC (2%)*		Provider of Pharmaceutical Products		Subordinated Note (LIBOR + 9.0%, 10.3% Cash, Due 12/20)(8)		10,000,000				9,820,631				9,820,631
						10,000,000				9,820,631				9,820,631
Schweiger Dermatology Group, LLC (3%)*		Provider of Dermatology Services		Senior Notes (LIBOR + 8.5%, 9.8% Cash, Due 06/22)(8)		20,000,000				19,639,784				19,639,784
						20,000,000				19,639,784				19,639,784
SCUF Gaming, Inc. (4%)*		Gaming Controller Manufacturer		Senior Notes (LIBOR + 8.5%, 9.7% Cash, Due 12/21)(8)		25,008,000				24,568,745				24,568,745
				Revolver Loan (LIBOR + 8.5%, 9.7% Cash, Due 06/18)(8)		1,500,000				1,500,000				1,500,000
				Common Stock (27,112 shares)						742,000				316,000
						26,508,000				26,810,745				26,384,745
Smile Brands, Inc. (4%)*		Dental Service Organization		Subordinated Notes (10% Cash, 2% PIK, Due 02/23)		22,681,843				22,289,511				22,289,511
				Class A Units (3,000 units)						3,000,000				2,876,000
						22,681,843				25,289,511				25,165,511
SPC Partners V, LP (0%)*(4)		Multi-Sector Holdings		0.7% Limited Partnership Interest						2,247,369				2,321,000
										2,247,369				2,321,000
Specialized Desanders, Inc. (2%)*(4)		Sand and Particulate Removal Equipment Provider for Oil and Gas Companies		Subordinated Note (11% Cash, 2% PIK, Due 10/20)		10,117,769				10,053,062				7,463,727
				Class C Partnership Units (2,000,000 units)						1,937,421				3,662,000
						10,117,769				11,990,483				11,125,727
St. Croix Hospice Acquisition Corp. (1%)*		Hospice Services Provider		Second Lien Term Note (LIBOR + 8.75%, 10.0% Cash, Due 03/24)(8)		9,200,000				9,062,000				9,062,000
				Series A Preferred Units (500 units)						500,000				500,000
				Class B Common Units (500 units)						—				—
						9,200,000				9,562,000				9,562,000
Tate's Bake Shop (2%)*		Producer of Baked Goods		Subordinated Note (10% Cash, 3% PIK, Due 02/20)		10,983,585				10,879,180				10,983,585
				Limited Partnership Interest						925,000				1,760,000
						10,983,585				11,804,180				12,743,585