Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

__________________________________________________________

Form 10-Q

__________________________________________________________

(Mark One)

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

For the quarterly period ended March 31, 2018

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, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	ý	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨
		Emerging growth company	¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			¨

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

The number of shares outstanding of the registrant’s Common Stock on May 2, 2018 was 48,024,614.

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TRIANGLE CAPITAL CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Consolidated Balance Sheet as of March 31, 2018 and Consolidated Balance Sheet as of December 31, 2017	3
	Unaudited Consolidated Statements of Operations for the Three Months Ended March 31, 2018 and 2017	4
	Unaudited Consolidated Statements of Changes in Net Assets for the Three Months Ended March 31, 2018 and 2017	5
	Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2018 and 2017	6
	Unaudited Consolidated Schedule of Investments as of March 31, 2018	7
	Consolidated Schedule of Investments as of December 31, 2017	14
	Notes to Unaudited Consolidated Financial Statements	21
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	47
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	68
Item 3.	Defaults Upon Senior Securities	68
Item 4.	Mine Safety Disclosures	68
Item 5.	Other Information	69
Item 6.	Exhibits	69
Signatures		71

2

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

TRIANGLE CAPITAL CORPORATION

Consolidated Balance Sheets

	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

See accompanying notes.

3

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Operations

	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

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				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

See accompanying notes.

5

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TRIANGLE CAPITAL CORPORATION

Unaudited Consolidated Statements of Cash Flows 

	Three Months Ended				Three Months Ended
	March 31, 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

See accompanying notes.

6

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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

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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

8

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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

9

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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

10

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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