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. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
March 31, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Investments at fair value: | |||||||
Non-Control / Non-Affiliate investments (cost of $857,171,598 and $910,150,765 as of March 31, 2018 and December 31, 2017, respectively) | $ | 788,115,373 | $ | 831,194,397 | |||
Affiliate investments (cost of $137,525,785 and $149,099,548 as of March 31, 2018 and December 31, 2017, respectively) | 136,933,857 | 147,101,949 | |||||
Control investments (cost of $64,694,407 and $62,375,532 as of March 31, 2018 and December 31, 2017, respectively) | 38,936,000 | 37,988,000 | |||||
Total investments at fair value | 963,985,230 | 1,016,284,346 | |||||
Cash and cash equivalents | 207,911,913 | 191,849,697 | |||||
Interest, fees and other receivables | 7,806,038 | 7,806,887 | |||||
Prepaid expenses and other current assets | 2,413,115 | 1,854,861 | |||||
Deferred financing fees | 4,931,031 | 5,186,672 | |||||
Property and equipment, net | 67,442 | 81,149 | |||||
Total assets | $ | 1,187,114,769 | $ | 1,223,063,612 | |||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 7,286,501 | $ | 9,863,209 | |||
Interest payable | 1,802,490 | 3,997,480 | |||||
Taxes payable | 126,587 | 796,111 | |||||
Deferred income taxes | 1,249,627 | 1,331,528 | |||||
Borrowings under credit facility | 125,001,284 | 156,070,484 | |||||
Notes | 163,578,086 | 163,408,301 | |||||
SBA-guaranteed debentures payable | 246,558,492 | 246,321,125 | |||||
Total liabilities | 545,603,067 | 581,788,238 | |||||
Commitments and contingencies (Note 8) | |||||||
Net Assets: | |||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 48,024,614 and 47,740,832 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively) | 48,025 | 47,741 | |||||
Additional paid-in capital | 823,786,656 | 823,614,881 | |||||
Net investment income in excess of distributions | 6,571,435 | 8,305,431 | |||||
Accumulated realized losses | (92,138,783 | ) | (84,883,623 | ) | |||
Net unrealized depreciation | (96,755,631 | ) | (105,809,056 | ) | |||
Total net assets | 641,511,702 | 641,275,374 | |||||
Total liabilities and net assets | $ | 1,187,114,769 | $ | 1,223,063,612 | |||
Net asset value per share | $ | 13.36 | $ | 13.43 |
Three Months Ended | Three Months Ended | ||||||
March 31, 2018 | March 31, 2017 | ||||||
Investment income: | |||||||
Interest income: | |||||||
Non-Control / Non-Affiliate investments | $ | 19,006,050 | $ | 20,470,837 | |||
Affiliate investments | 2,660,187 | 3,372,135 | |||||
Control investments | 275,036 | 269,536 | |||||
Total interest income | 21,941,273 | 24,112,508 | |||||
Dividend income: | |||||||
Non-Control / Non-Affiliate investments | 185,712 | 281,229 | |||||
Affiliate investments | 4,550 | — | |||||
Total dividend income | 190,262 | 281,229 | |||||
Fee and other income: | |||||||
Non-Control / Non-Affiliate investments | 1,293,717 | 1,917,238 | |||||
Affiliate investments | 394,273 | 300,264 | |||||
Control investments | 100,000 | 100,000 | |||||
Total fee and other income | 1,787,990 | 2,317,502 | |||||
Payment-in-kind interest income: | |||||||
Non-Control / Non-Affiliate investments | 1,306,581 | 2,639,382 | |||||
Affiliate investments | 422,140 | 738,466 | |||||
Total payment-in-kind interest income | 1,728,721 | 3,377,848 | |||||
Interest income from cash and cash equivalents | 427,841 | 101,683 | |||||
Total investment income | 26,076,087 | 30,190,770 | |||||
Operating expenses: | |||||||
Interest and other financing fees | 7,590,548 | 6,910,303 | |||||
Compensation expenses | 4,092,852 | 4,250,413 | |||||
General and administrative expenses | 1,668,509 | 1,210,621 | |||||
Total operating expenses | 13,351,909 | 12,371,337 | |||||
Net investment income | 12,724,178 | 17,819,433 | |||||
Realized and unrealized gains (losses) on investments and foreign currency borrowings: | |||||||
Net realized gains (losses): | |||||||
Non-Control / Non-Affiliate investments | (11,939,484 | ) | (12,360,335 | ) | |||
Affiliate investments | 3,257,198 | 3,532,816 | |||||
Control investments | 4,000 | (4,491,440 | ) | ||||
Net realized losses on investments | (8,678,286 | ) | (13,318,959 | ) | |||
Foreign currency borrowings | 1,423,126 | — | |||||
Net realized losses | (7,255,160 | ) | (13,318,959 | ) | |||
Net unrealized appreciation (depreciation): | |||||||
Non-Control / Non-Affiliate investments | 9,932,384 | 5,416,936 | |||||
Affiliate investments | 1,455,331 | (4,242,818 | ) | ||||
Control investments | (1,370,875 | ) | 1,697,440 | ||||
Net unrealized appreciation on investments | 10,016,840 | 2,871,558 | |||||
Foreign currency borrowings | (963,415 | ) | (178,792 | ) | |||
Net unrealized appreciation | 9,053,425 | 2,692,766 | |||||
Net realized and unrealized gains (losses) on investments and foreign currency borrowings | 1,798,265 | (10,626,193 | ) | ||||
Provision for taxes | (50,790 | ) | — | ||||
Net increase in net assets resulting from operations | $ | 14,471,653 | $ | 7,193,240 | |||
Net investment income per share—basic and diluted | $ | 0.27 | $ | 0.42 | |||
Net increase in net assets resulting from operations per share—basic and diluted | $ | 0.30 | $ | 0.17 | |||
Dividends/distributions per share: | |||||||
Regular quarterly dividends/distributions | $ | 0.30 | $ | 0.45 | |||
Total dividends/distributions per share | $ | 0.30 | $ | 0.45 | |||
Weighted average shares outstanding—basic and diluted | 47,898,859 | 42,743,469 |
Common Stock | Additional Paid-In Capital | Investment Income in Excess of Distributions | Net 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 | — | — | — | 17,819,433 | — | — | 17,819,433 | |||||||||||||||||||
Stock-based compensation | — | — | 1,453,904 | — | — | — | 1,453,904 | |||||||||||||||||||
Net realized gain (loss) on investments | — | — | — | — | (13,318,959 | ) | 12,342,077 | (976,882 | ) | |||||||||||||||||
Net unrealized depreciation on investments / foreign currency | — | — | — | — | — | (9,649,311 | ) | (9,649,311 | ) | |||||||||||||||||
Dividends / distributions | 40,559 | 40 | 749,913 | (21,438,377 | ) | — | — | (20,688,424 | ) | |||||||||||||||||
Public offering of common stock | 7,000,000 | 7,000 | 132,198,931 | — | — | — | 132,205,931 | |||||||||||||||||||
Issuance of restricted stock | 347,000 | 347 | (347 | ) | — | — | — | — | ||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (107,454 | ) | (107 | ) | (2,113,513 | ) | — | — | — | (2,113,620 | ) | |||||||||||||||
Balance, March 31, 2017 | 47,681,397 | $ | 47,681 | $ | 819,123,942 | $ | 2,265,568 | $ | (37,530,553 | ) | $ | (54,699,349 | ) | $ | 729,207,289 |
Common Stock | Additional Paid-In Capital | Investment Income in Excess of Distributions | Net Accumulated Realized Losses on Investments | Net Unrealized Depreciation | Total Net Assets | |||||||||||||||||||||
Number of Shares | Par Value | |||||||||||||||||||||||||
Balance, December 31, 2017 | 47,740,832 | $ | 47,741 | $ | 823,614,881 | $ | 8,305,431 | $ | (84,883,623 | ) | $ | (105,809,056 | ) | $ | 641,275,374 | |||||||||||
Net investment income | — | — | — | 12,724,178 | — | — | 12,724,178 | |||||||||||||||||||
Stock-based compensation | — | — | 1,455,543 | — | — | — | 1,455,543 | |||||||||||||||||||
Net realized gain (loss) on investments / foreign currency | — | — | — | — | (7,255,160 | ) | 11,567,045 | 4,311,885 | ||||||||||||||||||
Net unrealized depreciation on investments / foreign currency | — | — | — | — | — | (2,513,620 | ) | (2,513,620 | ) | |||||||||||||||||
Provision for taxes | — | — | — | (50,790 | ) | — | — | (50,790 | ) | |||||||||||||||||
Dividends / distributions | — | — | — | (14,407,384 | ) | — | — | (14,407,384 | ) | |||||||||||||||||
Issuance of restricted stock | 409,000 | 409 | (409 | ) | — | — | — | — | ||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (125,218 | ) | (125 | ) | (1,283,359 | ) | — | — | — | (1,283,484 | ) | |||||||||||||||
Balance, March 31, 2018 | 48,024,614 | $ | 48,025 | $ | 823,786,656 | $ | 6,571,435 | $ | (92,138,783 | ) | $ | (96,755,631 | ) | $ | 641,511,702 |
Three Months Ended | Three Months Ended | ||||||
March 31, 2018 | March 31, 2017 | ||||||
Cash flows from operating activities: | |||||||
Net increase in net assets resulting from operations | $ | 14,471,653 | $ | 7,193,240 | |||
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities: | |||||||
Purchases of portfolio investments | (28,285,073 | ) | (161,518,093 | ) | |||
Repayments received/sales of portfolio investments | 81,440,184 | 53,770,711 | |||||
Loan origination and other fees received | 205,499 | 2,638,485 | |||||
Net realized loss on investments | 8,678,286 | 13,318,959 | |||||
Net realized gain on foreign currency borrowings | (1,423,126 | ) | — | ||||
Net unrealized appreciation on investments | (9,934,939 | ) | (1,388,362 | ) | |||
Net unrealized depreciation on foreign currency borrowings | 963,415 | 178,792 | |||||
Deferred income taxes | (81,901 | ) | (1,483,196 | ) | |||
Payment-in-kind interest accrued, net of payments received | 1,425,537 | (690,432 | ) | ||||
Amortization of deferred financing fees | 662,793 | 587,438 | |||||
Accretion of loan origination and other fees | (1,224,392 | ) | (1,349,409 | ) | |||
Accretion of loan discounts | (5,986 | ) | (83,480 | ) | |||
Depreciation expense | 13,707 | 17,790 | |||||
Stock-based compensation | 1,455,543 | 1,453,904 | |||||
Changes in operating assets and liabilities: | |||||||
Interest, fees and other receivables | 849 | 4,695,274 | |||||
Prepaid expenses and other current assets | (558,254 | ) | (188,608 | ) | |||
Accounts payable and accrued liabilities | (2,576,708 | ) | (3,495,262 | ) | |||
Interest payable | (2,194,990 | ) | (2,437,827 | ) | |||
Taxes payable | (669,524 | ) | (489,691 | ) | |||
Net cash provided by (used in) operating activities | 62,362,573 | (89,269,767 | ) | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | — | (18,507 | ) | ||||
Net cash used in investing activities | — | (18,507 | ) | ||||
Cash flows from financing activities: | |||||||
Borrowings under credit facility | — | 50,000,000 | |||||
Repayments of credit facility | (30,609,489 | ) | (86,100,000 | ) | |||
Financing fees paid | — | (500,000 | ) | ||||
Net proceeds related to public offering of common stock | — | 132,205,931 | |||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (1,283,484 | ) | (2,113,620 | ) | |||
Cash dividends/distributions paid | (14,407,384 | ) | (20,688,424 | ) | |||
Net cash provided by (used in) financing activities | (46,300,357 | ) | 72,803,887 | ||||
Net increase (decrease) in cash and cash equivalents | 16,062,216 | (16,484,387 | ) | ||||
Cash and cash equivalents, beginning of period | 191,849,697 | 107,087,663 | |||||
Cash and cash equivalents, end of period | $ | 207,911,913 | $ | 90,603,276 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 8,748,005 | $ | 8,541,314 | |||
Summary of non-cash financing transactions: | |||||||
Dividends/distributions paid through DRIP share issuances | $ | — | $ | 749,953 |
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments March 31, 2018 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | Principal Amount | Cost | Fair Value(3) | |||||||||||
Non–Control / Non–Affiliate Investments: | ||||||||||||||||
Aden & Anais Holdings, Inc. (0%)* | Baby Products | Common Stock (20,000 shares) | $ | 2,000,000 | $ | 793,000 | ||||||||||
2,000,000 | 793,000 | |||||||||||||||
AKKR-MVSC Member, LLC (F/K/A Motor Vehicle Software Corporation) (0%)* | Provider of EVR Services | Class A Units (1,000,000 units) | 1,092,964 | 1,380,000 | ||||||||||||
1,092,964 | 1,380,000 | |||||||||||||||
AM General, LLC (5%)* | Defense Manufacturing | Senior Note (LIBOR + 7.25%, 8.9% Cash, Due 12/21)(8) | $ | 8,750,000 | 8,631,968 | 8,746,000 | ||||||||||
Second Lien Term Note (LIBOR +11.75%, 13.6% Cash, Due 06/22)(8) | 20,000,000 | 19,502,500 | 20,800,000 | |||||||||||||
28,750,000 | 28,134,468 | 29,546,000 | ||||||||||||||
Avantor, Inc. (0%)* | Life Sciences and Advanced Technologies | Subordinated Note (9.0% Cash, Due 10/25) | 500,000 | 500,000 | 500,000 | |||||||||||
500,000 | 500,000 | 500,000 | ||||||||||||||
AVL Holdings, Inc. (0%)* | Manufacturer and Distributor for Independent Artists and Authors | Common Stock (138 shares) | 1,300,000 | 2,871,000 | ||||||||||||
1,300,000 | 2,871,000 | |||||||||||||||
Baker Hill Acquisition, LLC (2%)* | Loan Origination Software Solutions Provider | Second Lien Term Notes (LIBOR + 11.0%, 12.7% Cash, Due 03/21)(8) | 13,500,000 | 13,376,617 | 10,669,000 | |||||||||||
Delayed Draw Term Note (LIBOR + 11.0%, 12.7% Cash, Due 03/21)(8) | 2,000,000 | 1,983,316 | 1,983,316 | |||||||||||||
Limited Partnership Interest | 1,498,500 | 106,000 | ||||||||||||||
15,500,000 | 16,858,433 | 12,758,316 | ||||||||||||||
Cafe Enterprises, Inc. (0%)* | Restaurant | Second Lien Term Note (Prime + 5.75%, 10.5% Cash, Due 03/19)(6)(8) | 2,051,934 | 1,936,671 | — | |||||||||||
Subordinated Note (7% Cash, 7% PIK, Due 09/19)(6) | 15,728,114 | 13,745,570 | — | |||||||||||||
Series C Preferred Stock (10,000 shares) | 1,000,000 | — | ||||||||||||||
17,780,048 | 16,682,241 | — | ||||||||||||||
Captek Softgel International, Inc. (5%)* | Nutraceuticals Manufacturer | Subordinated Note (10% Cash, 1.5% PIK, Due 01/23) | 30,928,648 | 30,660,616 | 30,660,616 | |||||||||||
Common Stock (38,023 shares) | 3,957,697 | 3,984,000 | ||||||||||||||
30,928,648 | 34,618,313 | 34,644,616 | ||||||||||||||
Carolina Beverage Group, LLC (0%)* | Beverage Manufacturing and Packaging | Class B Units (11,974 units) | 119,735 | 1,735,000 | ||||||||||||
119,735 | 1,735,000 | |||||||||||||||
Centerfield Media Holding Company (0%)* | Digital Marketing | Common Shares (500 shares) | 500,000 | 999,000 | ||||||||||||
500,000 | 999,000 | |||||||||||||||
CIBT Global, Inc. (2%)* | Provider of Mobility Services | Second Lien Term Note (LIBOR + 7.75%, 10.1% Cash, Due 06/25)(8) | 10,000,000 | 9,906,716 | 9,972,000 | |||||||||||
10,000,000 | 9,906,716 | 9,972,000 | ||||||||||||||
CIS Acquisition, LLC (0%)* | Secure Communications and Computing Solutions Provider | Units (1.09 units) | 277,538 | 317,000 | ||||||||||||
277,538 | 317,000 | |||||||||||||||
Community Intervention Services, Inc. (0%)* | Provider of Behavioral Health Services | Subordinated Note (7% Cash, 6% PIK, Due 01/21) (6) | 21,650,530 | 17,732,558 | — | |||||||||||
21,650,530 | 17,732,558 | — | ||||||||||||||
Constellis Holdings, LLC (1%)* | Provider of Security and Risk Management Services | Second Lien Term Note (LIBOR + 9.0%, 11.3% Cash, Due 04/25)(8) | 5,000,000 | 4,931,468 | 4,970,000 | |||||||||||
5,000,000 | 4,931,468 | 4,970,000 | ||||||||||||||
CPower Ultimate HoldCo, LLC (0%)* | Demand Response Business | Units (345,542 units) | 345,542 | 2,221,000 | ||||||||||||
345,542 | 2,221,000 | |||||||||||||||
CWS Holding Company, LLC (0%)* | Manufacturer of Custom Windows and Sliding Doors | Class A Units (1,500,000 units) | 1,500,000 | 1,218,000 | ||||||||||||
1,500,000 | 1,218,000 | |||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2018 | ||||||||||||||||
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 | $ | 720,000 | ||||||||||
1,000,000 | 720,000 | |||||||||||||||
Del Real, LLC (3%)* | Hispanic Refrigerated Foods Company | Subordinated Note (11% Cash, Due 04/23) | $ | 14,000,000 | 13,768,309 | 13,768,309 | ||||||||||
Class A Units (3,000,000 units) | 3,000,000 | 3,382,000 | ||||||||||||||
14,000,000 | 16,768,309 | 17,150,309 | ||||||||||||||
Deva Holdings, Inc. (5%)* | Hair Products | Senior Note (LIBOR + 6.25%, 7.9% Cash, Due 10/23)(8) | 32,418,750 | 31,765,980 | 31,765,980 | |||||||||||
32,418,750 | 31,765,980 | 31,765,980 | ||||||||||||||
Dimora Brands, Inc. (3%)* | Hardware Designer and Distributor | Second Lien Term Note (LIBOR + 8.5%, 10.4% Cash, Due 08/25)(8) | 20,000,000 | 19,617,005 | 19,940,000 | |||||||||||
20,000,000 | 19,617,005 | 19,940,000 | ||||||||||||||
DLC Acquisition, LLC (6%)* | Staffing Firm | Senior Notes (LIBOR + 8.0%, 10% Cash, Due 12/20)(8) | 21,434,375 | 21,293,747 | 21,293,747 | |||||||||||
Senior Note (10% Cash, 2% PIK, Due 12/20) | 17,362,058 | 17,220,697 | 17,220,697 | |||||||||||||
38,796,433 | 38,514,444 | 38,514,444 | ||||||||||||||
Dyno Acquiror, Inc. (1%)* | Sewing Products and Seasonal Decorative Products Supplier | Subordinated Note (10.5% Cash, 1.5% PIK, Due 08/20) | 4,681,037 | 4,669,651 | 4,669,651 | |||||||||||
Series A Units (600,000 units) | 600,000 | 461,000 | ||||||||||||||
4,681,037 | 5,269,651 | 5,130,651 | ||||||||||||||
Eckler's Holdings, Inc. (0%)* | Restoration Parts and Accessories for Classic Cars and Trucks | Subordinated Note (17.5% Cash, Due 06/19)(6) | 15,014,802 | 13,242,814 | 200,000 | |||||||||||
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 | — | ||||||||||||||
15,014,802 | 15,457,629 | 200,000 | ||||||||||||||
Frozen Specialties, Inc. (2%)* | Frozen Foods Manufacturer | Subordinated Note (10% Cash, 4% PIK, Due 07/18) | 14,380,842 | 14,380,842 | 13,733,000 | |||||||||||
14,380,842 | 14,380,842 | 13,733,000 | ||||||||||||||
GST AutoLeather, Inc. (0%)* | Supplier of Automotive Interior Leather | Subordinated Note (0% Cash, Due 01/21)(6) | 24,166,324 | 23,073,507 | 200,000 | |||||||||||
24,166,324 | 23,073,507 | 200,000 | ||||||||||||||
Halo Branded Solutions, Inc. (3%)* | Promotional Product Supply Chain Services | Subordinated Notes (11% Cash, 1% PIK, Due 10/22) | 13,800,946 | 13,587,077 | 13,587,077 | |||||||||||
Class A1 Units (2,600 units) | 2,600,000 | 6,180,000 | ||||||||||||||
13,800,946 | 16,187,077 | 19,767,077 | ||||||||||||||
HemaSource, Inc. (2%)* | Medical Products Distributor | Subordinated Note (9.5% Cash, 1.5% PIK, Due 01/24) | 10,107,044 | 9,924,395 | 9,924,395 | |||||||||||
Class A Units (1,000,000 units) | 1,000,000 | 1,118,000 | ||||||||||||||
10,107,044 | 10,924,395 | 11,042,395 | ||||||||||||||
HKW Capital Partners IV, L.P. (0%)*(4) | Multi-Sector Holdings | 0.6% Limited Partnership Interest | 851,605 | 1,464,000 | ||||||||||||
851,605 | 1,464,000 | |||||||||||||||
HTC Borrower, LLC (4%)* | Hunting and Outdoor Products | Subordinated Notes (10% Cash, 3% PIK, Due 09/20) | 24,631,218 | 24,435,457 | 23,434,000 | |||||||||||
24,631,218 | 24,435,457 | 23,434,000 | ||||||||||||||
ICP Industrial, Inc. (4%)* | Coatings Formulator and Manufacturer | Second Lien Term Notes (LIBOR + 8.25%, 9.9% Cash, Due 05/24)(8) | 25,000,000 | 24,411,011 | 24,411,011 | |||||||||||
Class A Units (1,289 units) | 1,751,483 | 1,783,000 | ||||||||||||||
25,000,000 | 26,162,494 | 26,194,011 | ||||||||||||||
IDERA, Inc. (2%)* | Software Provider | Second Lien Term Note (LIBOR + 9.0%, 10.9% Cash, Due 06/25)(8) | 10,000,000 | 9,859,581 | 10,020,000 | |||||||||||
10,000,000 | 9,859,581 | 10,020,000 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2018 | ||||||||||||||||
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 | $ | 1,120,000 | ||||||||||
853,500 | 1,120,000 | |||||||||||||||
Integrated Efficiency Solutions, Inc. (3%)* | Energy Services Contracting Firm | Senior Secured Term Note (LIBOR + 9.25%, 10.9% Cash, Due 06/22)(8) | $ | 18,037,500 | 17,752,509 | 17,752,509 | ||||||||||
Series B Preferred Units (238,095 units) | 300,000 | 239,000 | ||||||||||||||
18,037,500 | 18,052,509 | 17,991,509 | ||||||||||||||
Keystone Peer Review Organization, Inc. (0%)* | Healthcare - Managed Care | Second Lien Term Note (LIBOR + 9.25%, 11.6% Cash, Due 05/25)(8) | 3,000,000 | 2,945,124 | 2,969,000 | |||||||||||
3,000,000 | 2,945,124 | 2,969,000 | ||||||||||||||
KidKraft, Inc. (4%)* | Children's Toy Manufacturer and Distributor | Second Lien Term Note (11% Cash, 1% PIK, Due 03/22) | 28,015,253 | 27,582,780 | 27,582,780 | |||||||||||
28,015,253 | 27,582,780 | 27,582,780 | ||||||||||||||
K-Square Restaurant Partners, LP (0%)* | Restaurant | Class A Units of Limited Partnership (2,000 units) | 638,260 | 779,000 | ||||||||||||
638,260 | 779,000 | |||||||||||||||
Lakeview Health Holdings, Inc. (3%)* | Substance Abuse Treatment Service Provider | Senior Note (LIBOR + 7.0%, 9.5% Cash, Due 12/21)(8) | 18,379,973 | 18,223,024 | 17,370,000 | |||||||||||
Common Stock (2,000 shares) | 2,000,000 | 585,000 | ||||||||||||||
18,379,973 | 20,223,024 | 17,955,000 | ||||||||||||||
Media Storm, LLC (0%)* | Marketing Services | Subordinated Note (10% Cash, Due 08/19)(6) | 6,545,455 | 6,541,519 | 1,617,000 | |||||||||||
Membership Units (1,216,204 units) | 1,176,957 | — | ||||||||||||||
6,545,455 | 7,718,476 | 1,617,000 | ||||||||||||||
MIC Holding LLC (1%)* | Firearm Accessories Manufacturer and Distributor | Preferred Units (1,470 units) | 1,470,000 | 3,566,000 | ||||||||||||
Common Units (30,000 units) | 30,000 | 5,088,000 | ||||||||||||||
1,500,000 | 8,654,000 | |||||||||||||||
Micross Solutions LLC (2%)* | Provider of Semiconductor Products and Services | Senior Note (LIBOR + 5.75%, 7.8% Cash, Due 08/23)(8) | 14,925,000 | 14,758,054 | 14,758,054 | |||||||||||
Class A-2 Common Units (1,979,524 units) | 2,019,693 | 1,334,000 | ||||||||||||||
14,925,000 | 16,777,747 | 16,092,054 | ||||||||||||||
Nautic Partners VII, LP (0%)*(4) | Multi-Sector Holdings | 0.4% Limited Partnership Interest | 809,056 | 765,000 | ||||||||||||
809,056 | 765,000 | |||||||||||||||
Navicure, Inc. (1%)* | Healthcare Revenue Cycle Management Software | Second Lien Term Note (LIBOR + 7.5%, 9.4% Cash, Due 11/25)(8) | 6,000,000 | 5,942,685 | 6,047,000 | |||||||||||
6,000,000 | 5,942,685 | 6,047,000 | ||||||||||||||
OEConnection, LLC (0%)* | Automotive Parts Supply Chain Software | Second Lien Term Note (LIBOR + 8.0%, 10.5% Cash, Due 11/25)(8) | 3,000,000 | 2,970,642 | 3,022,000 | |||||||||||
3,000,000 | 2,970,642 | 3,022,000 | ||||||||||||||
Orchid Underwriters Agency, LLC (1%)* | Insurance Underwriter | Subordinated Note (10% Cash, 1.5% PIK, Due 03/23) | 2,143,233 | 2,105,117 | 2,105,117 | |||||||||||
Subordinated Note (13.5% PIK, Due 03/24) | 839,877 | 825,789 | 825,789 | |||||||||||||
Class A Preferred Units (15,000 units) | 338,158 | 988,000 | ||||||||||||||
Class A Common Units (15,000 units) | — | 1,337,000 | ||||||||||||||
2,983,110 | 3,269,064 | 5,255,906 | ||||||||||||||
ProAmpac PG Borrower LLC (2%)* | Manufacturer of Flexible Packaging Products | Second Lien Term Note (LIBOR + 8.5%, 10.4% Cash, Due 11/24)(8) | 15,000,000 | 14,800,030 | 15,150,000 | |||||||||||
15,000,000 | 14,800,030 | 15,150,000 | ||||||||||||||
Q International Courier, LLC (2%)* | Third-Party Logistics Provider | Second Lien Term Note (LIBOR + 8.25%, 10.1% Cash, Due 09/25)(8) | 14,000,000 | 13,732,023 | 13,732,023 | |||||||||||
14,000,000 | 13,732,023 | 13,732,023 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2018 | ||||||||||||||||
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%, 10.7% Cash, Due 02/25)(8) | $ | 15,000,000 | $ | 14,799,795 | $ | 15,068,000 | ||||||||
15,000,000 | 14,799,795 | 15,068,000 | ||||||||||||||
RMP Group, Inc. (2%)* | Healthcare Revenue Cycle Management Services | Subordinated Note (10.5% Cash, 1% PIK, Due 09/22) | 10,108,677 | 9,937,103 | 9,937,103 | |||||||||||
Units (1,000 units) | 1,000,000 | 802,000 | ||||||||||||||
10,108,677 | 10,937,103 | 10,739,103 | ||||||||||||||
RockYou, Inc. (0%)* | Mobile Game Advertising Network | Common Stock (67,585 shares) | 111,000 | 111,000 | ||||||||||||
111,000 | 111,000 | |||||||||||||||
Rotolo Consultants, Inc. (3%)* | Landscape Services | Subordinated Note (11% Cash, 3% PIK, Due 08/21) | 7,690,320 | 7,594,155 | 7,594,155 | |||||||||||
Series A Preferred Units (39 units) | 3,654,253 | 8,464,000 | ||||||||||||||
7,690,320 | 11,248,408 | 16,058,155 | ||||||||||||||
SCA Pharmaceuticals, LLC (2%)* | Provider of Pharmaceutical Products | Subordinated Note (LIBOR + 9.0%, 11.0% Cash, Due 12/20)(8) | 10,000,000 | 9,844,578 | 9,844,578 | |||||||||||
10,000,000 | 9,844,578 | 9,844,578 | ||||||||||||||
Schweiger Dermatology Group, LLC (6%)* | Provider of Dermatology Services | Senior Notes (LIBOR + 8.5%, 10.5% Cash, Due 06/22)(8) | 34,800,000 | 34,325,281 | 34,325,281 | |||||||||||
Class A-5 Units (1,976,284 units) | 1,000,000 | 1,567,000 | ||||||||||||||
34,800,000 | 35,325,281 | 35,892,281 | ||||||||||||||
SCUF Gaming, Inc. (4%)* | Gaming Controller Manufacturer | Senior Notes (LIBOR + 8.5%, 10.2% Cash, Due 12/21)(8) | 24,757,920 | 24,361,718 | 24,361,718 | |||||||||||
Revolver Loan (LIBOR + 8.5%, 10.2% Cash, Due 06/18)(8) | 1,500,000 | 1,493,806 | 1,493,806 | |||||||||||||
Common Stock (27,112 shares) | 742,000 | 260,000 | ||||||||||||||
26,257,920 | 26,597,524 | 26,115,524 | ||||||||||||||
Smile Brands, Inc. (4%)* | Dental Service Organization | Subordinated Notes (10% Cash, 2% PIK, Due 02/23) | 22,911,761 | 22,546,954 | 22,546,954 | |||||||||||
Class A Units (3,000 units) | 3,000,000 | 3,353,000 | ||||||||||||||
22,911,761 | 25,546,954 | 25,899,954 | ||||||||||||||
SPC Partners V, LP (0%)*(4) | Multi-Sector Holdings | 0.7% Limited Partnership Interest | 2,260,450 | 2,412,000 | ||||||||||||
2,260,450 | 2,412,000 | |||||||||||||||
SPC Partners VI, LP (0%)*(4) | Multi-Sector Holdings | 0.6% Limited Partnership Interest | 475,450 | 475,450 | ||||||||||||
475,450 | 475,450 | |||||||||||||||
St. Croix Hospice Acquisition Corp. (1%)* | Hospice Services Provider | Second Lien Term Note (LIBOR + 8.75%, 10.6% Cash, Due 03/24)(8) | 9,200,000 | 9,069,764 | 9,069,764 | |||||||||||
Series A Preferred Units (500 units) | 500,000 | 264,000 | ||||||||||||||
Class B Common Units (500 units) | — | — | ||||||||||||||
9,200,000 | 9,569,764 | 9,333,764 | ||||||||||||||
Tate's Bake Shop (2%)* | Producer of Baked Goods | Senior Note (LIBOR + 6.25%, 8.6% Cash, Due 08/19)(8) | 9,950,000 | 9,929,852 | 9,929,852 | |||||||||||
Limited Partnership Interest | 534,280 | 1,827,000 | ||||||||||||||
9,950,000 | 10,464,132 | 11,756,852 | ||||||||||||||
Tax Advisors Group, LLC (2%)* | Tax Advisory Services | Subordinated Note (10% Cash, 2% PIK, Due 12/22) | 12,400,000 | 12,178,426 | 12,178,426 | |||||||||||
Class A Units (386 units) | 1,458,824 | 2,354,000 | ||||||||||||||
12,400,000 | 13,637,250 | 14,532,426 | ||||||||||||||
TCFI Merlin LLC ("Merlin") and TCFI CSG LLC ("CSG") (2%)* | Specialty Staffing Service Provider | Subordinated Notes (11.9% Cash, Due 11/22)(8) | 14,184,192 | 13,999,058 | 13,999,058 | |||||||||||
Limited Partnership Units - Merlin (500,500 units) | 285,485 | 1,606,000 | ||||||||||||||
Class A Units - CSG (100,000 units) | 100,000 | 264,000 | ||||||||||||||
14,184,192 | 14,384,543 | 15,869,058 | ||||||||||||||
TRIANGLE CAPITAL CORPORATION Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2018 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(2)(7) | Principal Amount | Cost | Fair Value(3) | |||||||||||
The Cook & Boardman Group, LLC (1%)* | Distributor of Doors and Related Products | Class A Units (1,400,000 units) | $ | 1,400,000 | $ | 3,435,000 | ||||||||||
1,400,000 | 3,435,000 | |||||||||||||||
Trademark Global LLC (4%)* | Supplier to Mass Market Internet Retail | Senior Note (LIBOR + 5.5%, 7.4% Cash, Due 10/22)(8) | $ | 9,974,897 | 9,879,619 | 9,879,619 | ||||||||||
Subordinated Note (10% Cash, 1.3% PIK, Due 04/23) | 14,800,000 | 14,617,380 | 14,617,380 | |||||||||||||
Class A Units (1,500,000 units) | 1,500,000 | 1,500,000 | ||||||||||||||
Class B Units (1,500,000 units) | — | 800,000 | ||||||||||||||
24,774,897 | 25,996,999 | 26,796,999 | ||||||||||||||
Travelpro Products, Inc. ("Travelpro") and TP - Holiday Group Limited ("TP") (3%)* | Luggage and Travel Bag Supplier | Second Lien Term Note - Travelpro (11% Cash, 2% PIK, Due 11/22) | 10,384,620 | 10,212,850 | 10,212,850 | |||||||||||
Second Lien Term Note - TP (11% Cash, 2% PIK, Due 11/22)(4) | 9,199,637 | 9,045,042 | 9,184,943 | |||||||||||||
Common Units - Travelpro (2,000,000 units) | 2,000,000 | 2,337,000 | ||||||||||||||
19,584,257 | 21,257,892 | 21,734,793 | ||||||||||||||
United Biologics, LLC (0%)* | Allergy Immunotherapy | Class A-1 Common Units (18,818 units) | 137,324 | 137,325 | ||||||||||||
Class A Common Units (177,935 units) | 1,999,989 | 1,207,000 | ||||||||||||||
Class A-2 Common Kicker Units (444,003 units) | — | — | ||||||||||||||
Class A-1 Common Kicker Units (14,114 units) | — | — | ||||||||||||||
Class A, Class A-1, Class A-1 Kicker & Class B Unit Purchase Warrants | 838,117 | 263,000 | ||||||||||||||
2,975,430 | 1,607,325 | |||||||||||||||