10-Q: Quarterly report pursuant to Section 13 or 15(d)
Published on May 6, 2015
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, 2015
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” and “smaller reporting 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 |
¨ |
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 6, 2015 was 33,225,627.
TRIANGLE CAPITAL CORPORATION
TABLE OF CONTENTS
QUARTERLY REPORT ON FORM 10-Q
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. |
||
2
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
TRIANGLE CAPITAL CORPORATION
Consolidated Balance Sheets
March 31, 2015 |
December 31, 2014 |
||||||
(Unaudited) |
|||||||
Assets: |
|||||||
Investments at fair value: |
|||||||
Non-Control / Non-Affiliate investments (cost of $686,166,666 and $717,233,688 at March 31, 2015 and December 31, 2014, respectively) |
$ |
651,682,278 |
$ |
693,312,886 |
|||
Affiliate investments (cost of $210,307,952 and $175,182,171 at March 31, 2015 and December 31, 2014, respectively) |
213,255,812 |
178,935,236 |
|||||
Control investments (cost of $29,636,763 and $29,636,763 at March 31, 2015 and December 31, 2014, respectively) |
12,473,000 |
14,975,000 |
|||||
Total investments at fair value |
877,411,090 |
887,223,122 |
|||||
Cash and cash equivalents |
111,763,958 |
78,759,026 |
|||||
Interest and fees receivable |
7,205,672 |
7,409,105 |
|||||
Prepaid expenses and other current assets |
615,625 |
438,861 |
|||||
Property and equipment, net |
115,427 |
108,753 |
|||||
Total assets |
$ |
997,111,772 |
$ |
973,938,867 |
|||
Liabilities: |
|||||||
Accounts payable and accrued liabilities |
$ |
3,113,643 |
$ |
7,144,673 |
|||
Interest payable |
1,435,372 |
3,365,237 |
|||||
Taxes payable |
56,002 |
2,506,031 |
|||||
Deferred income taxes |
3,208,718 |
3,363,669 |
|||||
Borrowings under credit facility |
20,323,357 |
61,389,306 |
|||||
Notes |
229,425,841 |
145,646,224 |
|||||
SBA-guaranteed debentures payable |
219,933,391 |
219,697,098 |
|||||
Total liabilities |
477,496,324 |
443,112,238 |
|||||
Commitments and contingencies (Note 6) |
|||||||
Net Assets: |
|||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 33,225,627 and 32,950,288 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively) |
33,226 |
32,950 |
|||||
Additional paid in capital |
542,136,742 |
542,119,994 |
|||||
Investment income in excess of distributions |
10,976,071 |
12,926,514 |
|||||
Accumulated realized gains |
15,729,070 |
12,464,699 |
|||||
Net unrealized appreciation (depreciation) |
(49,259,661 |
) |
(36,717,528 |
) |
|||
Total net assets |
519,615,448 |
530,826,629 |
|||||
Total liabilities and net assets |
$ |
997,111,772 |
$ |
973,938,867 |
|||
Net asset value per share |
$ |
15.64 |
$ |
16.11 |
See accompanying notes.
3
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Statements of Operations
Three Months
Ended
|
Three Months
Ended
|
||||||
March 31, 2015 |
March 31, 2014 |
||||||
Investment income: |
|||||||
Loan interest, fee and dividend income: |
|||||||
Non-Control / Non-Affiliate investments |
$ |
21,784,751 |
$ |
16,507,765 |
|||
Affiliate investments |
4,944,559 |
3,576,791 |
|||||
Control investments |
100,000 |
145,360 |
|||||
Total loan interest, fee and dividend income |
26,829,310 |
20,229,916 |
|||||
Payment-in-kind interest income: |
|||||||
Non-Control / Non-Affiliate investments |
2,728,323 |
2,997,777 |
|||||
Affiliate investments |
1,169,001 |
730,657 |
|||||
Control investments |
— |
5,987 |
|||||
Total payment-in-kind interest income |
3,897,324 |
3,734,421 |
|||||
Interest income from cash and cash equivalent investments |
52,936 |
74,608 |
|||||
Total investment income |
30,779,570 |
24,038,945 |
|||||
Operating expenses: |
|||||||
Interest and other financing fees |
6,432,455 |
5,139,512 |
|||||
General and administrative expenses |
6,577,536 |
5,056,092 |
|||||
Total operating expenses |
13,009,991 |
10,195,604 |
|||||
Net investment income |
17,769,579 |
13,843,341 |
|||||
Realized and unrealized gains (losses) on investments and foreign currency borrowings: |
|||||||
Net realized gains (losses): |
|||||||
Non-Control / Non-Affiliate investments |
3,236,669 |
272,201 |
|||||
Affiliate investments |
27,702 |
— |
|||||
Control investments |
— |
(208,553 |
) |
||||
Net realized gains (losses) |
3,264,371 |
63,648 |
|||||
Net unrealized appreciation (depreciation): |
|||||||
Investments |
(13,715,840 |
) |
(1,498,470 |
) |
|||
Foreign currency borrowings |
1,173,707 |
360,535 |
|||||
Net unrealized appreciation (depreciation) |
(12,542,133 |
) |
(1,137,935 |
) |
|||
Net realized and unrealized gains (losses) on investments and foreign currency borrowings |
(9,277,762 |
) |
(1,074,287 |
) |
|||
Provision for taxes |
(137,875 |
) |
(266,555 |
) |
|||
Net increase in net assets resulting from operations |
$ |
8,353,942 |
$ |
12,502,499 |
|||
Net investment income per share—basic and diluted |
$ |
0.54 |
$ |
0.50 |
|||
Net increase in net assets resulting from operations per share—basic and diluted |
$ |
0.25 |
$ |
0.45 |
|||
Dividends/distributions paid per share: |
|||||||
Regular quarterly dividends/distributions |
$ |
0.54 |
$ |
0.54 |
|||
Supplemental dividends/distributions |
0.05 |
0.15 |
|||||
Total dividends/distributions |
$ |
0.59 |
$ |
0.69 |
|||
Weighted average number of shares outstanding—basic and diluted |
33,099,197 |
27,805,108 |
See accompanying notes.
4
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Statements of Changes in Net Assets
Common Stock |
Additional
Paid In
Capital
|
Investment
Income
in Excess of Distributions
|
Accumulated
Realized
Gains on Investments |
Net
Unrealized
Appreciation(Depreciation) |
Total
Net
Assets
|
|||||||||||||||||||||
Number
of Shares
|
Par
Value
|
|||||||||||||||||||||||||
Balance, December 31, 2013 |
27,697,483 |
$ |
27,697 |
$ |
409,042,893 |
$ |
8,610,735 |
$ |
20,665,371 |
$ |
7,445,434 |
$ |
445,792,130 |
|||||||||||||
Net investment income |
— |
— |
— |
13,843,341 |
— |
— |
13,843,341 |
|||||||||||||||||||
Stock-based compensation |
— |
— |
1,338,072 |
— |
— |
— |
1,338,072 |
|||||||||||||||||||
Realized gain (loss) on investments |
— |
— |
— |
— |
63,648 |
(555,390 |
) |
(491,742 |
) |
|||||||||||||||||
Net unrealized gains (losses) on investments / foreign currency |
— |
— |
— |
— |
— |
(582,545 |
) |
(582,545 |
) |
|||||||||||||||||
Provision for taxes |
— |
— |
— |
(266,555 |
) |
— |
— |
(266,555 |
) |
|||||||||||||||||
Dividends / distributions |
27,108 |
27 |
707,263 |
(15,053,358 |
) |
(4,181,488 |
) |
— |
(18,527,556 |
) |
||||||||||||||||
Issuance of restricted stock |
273,000 |
273 |
(273 |
) |
— |
— |
— |
— |
||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock |
(93,895 |
) |
(93 |
) |
(2,474,028 |
) |
— |
— |
— |
(2,474,121 |
) |
|||||||||||||||
Balance, March 31, 2014 |
27,903,696 |
$ |
27,904 |
$ |
408,613,927 |
$ |
7,134,163 |
$ |
16,547,531 |
$ |
6,307,499 |
$ |
438,631,024 |
Common Stock |
Additional
Paid In
Capital
|
Investment
Income
in Excess of Distributions
|
Accumulated
Realized
Gains on Investments |
Net
Unrealized
Appreciation (Depreciation) |
Total
Net
Assets
|
|||||||||||||||||||||
Number
of Shares
|
Par
Value
|
|||||||||||||||||||||||||
Balance, December 31, 2014 |
32,950,288 |
$ |
32,950 |
$ |
542,119,994 |
$ |
12,926,514 |
$ |
12,464,699 |
$ |
(36,717,528 |
) |
$ |
530,826,629 |
||||||||||||
Net investment income |
— |
— |
— |
17,769,579 |
— |
— |
17,769,579 |
|||||||||||||||||||
Stock-based compensation |
— |
— |
1,642,297 |
— |
— |
— |
1,642,297 |
|||||||||||||||||||
Realized gain (loss) on investments |
— |
— |
— |
— |
3,264,371 |
(3,370,439 |
) |
(106,068 |
) |
|||||||||||||||||
Net unrealized loss on investments / foreign currency |
— |
— |
— |
— |
— |
(9,171,694 |
) |
(9,171,694 |
) |
|||||||||||||||||
Provision for taxes |
— |
— |
— |
(137,875 |
) |
— |
— |
(137,875 |
) |
|||||||||||||||||
Dividends / distributions |
35,548 |
36 |
830,010 |
(19,582,147 |
) |
— |
(18,752,101 |
) |
||||||||||||||||||
Expenses related to public offering of common stock |
— |
— |
(54,967 |
) |
— |
— |
— |
(54,967 |
) |
|||||||||||||||||
Issuance of restricted stock |
350,000 |
350 |
(350 |
) |
— |
— |
— |
— |
||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock |
(110,209 |
) |
(110 |
) |
(2,400,242 |
) |
— |
— |
— |
(2,400,352 |
) |
|||||||||||||||
Balance, March 31, 2015 |
33,225,627 |
$ |
33,226 |
$ |
542,136,742 |
$ |
10,976,071 |
$ |
15,729,070 |
$ |
(49,259,661 |
) |
$ |
519,615,448 |
See accompanying notes.
5
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Statements of Cash Flows
Three Months Ended |
Three Months Ended |
||||||
March 31, 2015 |
March 31, 2014 |
||||||
Cash flows from operating activities: |
|||||||
Net increase in net assets resulting from operations |
$ |
8,353,942 |
$ |
12,502,499 |
|||
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities: |
|||||||
Purchases of portfolio investments |
(98,213,197 |
) |
(77,498,482 |
) |
|||
Repayments received/sales of portfolio investments |
97,094,750 |
51,808,786 |
|||||
Loan origination and other fees received |
1,606,861 |
1,367,819 |
|||||
Net realized gain on investments |
(3,264,371 |
) |
(63,648 |
) |
|||
Net unrealized depreciation on investments |
13,870,791 |
1,402,236 |
|||||
Net unrealized appreciation on foreign currency borrowings |
(1,173,707 |
) |
(360,535 |
) |
|||
Deferred income taxes |
(154,951 |
) |
96,234 |
||||
Payment-in-kind interest accrued, net of payments received |
810,547 |
(1,472,204 |
) |
||||
Amortization of deferred financing fees |
511,864 |
397,944 |
|||||
Accretion of loan origination and other fees |
(1,960,200 |
) |
(835,536 |
) |
|||
Accretion of loan discounts |
(133,149 |
) |
(346,201 |
) |
|||
Accretion of discount on SBA-guaranteed debentures payable |
46,222 |
45,230 |
|||||
Depreciation expense |
15,169 |
9,652 |
|||||
Stock-based compensation |
1,642,297 |
1,338,072 |
|||||
Changes in operating assets and liabilities: |
|||||||
Interest and fees receivable |
203,433 |
1,549,819 |
|||||
Prepaid expenses and other current assets |
(176,764 |
) |
(2,641,584 |
) |
|||
Accounts payable and accrued liabilities |
(4,031,030 |
) |
(5,750,369 |
) |
|||
Interest payable |
(1,929,865 |
) |
(1,924,058 |
) |
|||
Taxes payable |
(2,450,029 |
) |
(1,064,544 |
) |
|||
Net cash provided by (used in) operating activities |
10,668,613 |
(21,438,870 |
) |
||||
Cash flows from investing activities: |
|||||||
Purchases of property and equipment |
(21,843 |
) |
(25,552 |
) |
|||
Net cash used in investing activities |
(21,843 |
) |
(25,552 |
) |
|||
Cash flows from financing activities: |
|||||||
Borrowings under credit facility |
8,000,000 |
— |
|||||
Repayments of credit facility |
(48,000,000 |
) |
— |
||||
Proceeds from notes |
83,565,582 |
— |
|||||
Expenses related to public offering of common stock |
(54,967 |
) |
— |
||||
Common stock withheld for payroll taxes upon vesting of restricted stock |
(2,400,352 |
) |
(2,474,121 |
) |
|||
Cash dividends/distributions paid |
(18,752,101 |
) |
(18,527,556 |
) |
|||
Net cash provided by (used in) financing activities |
22,358,162 |
(21,001,677 |
) |
||||
Net increase (decrease) in cash and cash equivalents |
33,004,932 |
(42,466,099 |
) |
||||
Cash and cash equivalents, beginning of period |
78,759,026 |
133,304,346 |
|||||
Cash and cash equivalents, end of period |
$ |
111,763,958 |
$ |
90,838,247 |
|||
Supplemental disclosure of cash flow information: |
|||||||
Cash paid for interest |
$ |
7,644,734 |
$ |
6,404,312 |
|||
Summary of non-cash financing transactions: |
|||||||
Dividends/distributions paid through DRIP share issuances |
$ |
830,046 |
$ |
707,290 |
See accompanying notes.
6
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Schedule of Investments
March 31, 2015
| ||||||||||||||||
Portfolio Company |
Industry |
Type of Investment(1)(2)
|
Principal
Amount
|
Cost |
Fair
Value(3)
|
|||||||||||
Non–Control / Non–Affiliate Investments: |
||||||||||||||||
Agilex Flavors & Fragrances, Inc. (3%)* |
Custom Fragrance Producer |
Subordinated Note (12% Cash, 1.5% PIK, Due 06/19) |
$ |
12,940,632 |
$ |
12,756,508 |
$ |
12,756,508 |
||||||||
Common Units (1,250 units) |
1,250,000 |
2,164,000 |
||||||||||||||
12,940,632 |
14,006,508 |
14,920,508 |
||||||||||||||
AGM Automotive, LLC (0%)* |
Auto Industry Interior Components Suppler |
Class A Units (1,500,000 units) |
630,134 |
1,736,000 |
||||||||||||
630,134 |
1,736,000 |
|||||||||||||||
Applied-Cleveland Holdings, Inc. (5%)* |
Oil and Gas Pipeline Infrastructure Inspection Services |
Subordinated Note (10% Cash, 2% PIK, Due 06/19) |
23,115,192 |
22,810,632 |
22,810,632 |
|||||||||||
Class A Units (2,129,032 units) |
2,129,032 |
2,183,000 |
||||||||||||||
23,115,192 |
24,939,664 |
24,993,632 |
||||||||||||||
Assurance Operations Corporation (0%)* |
Metal Fabrication |
Common Stock (517 shares) |
516,867 |
1,102,000 |
||||||||||||
516,867 |
1,102,000 |
|||||||||||||||
Audio and Video Labs Holdings, Inc. (2%)* |
Manufacturer and Distributor for Independent Artists and Authors |
Subordinated Note (12% Cash, 2% PIK, Due 06/18) |
10,348,844 |
10,211,191 |
10,211,191 |
|||||||||||
Common Stock (138 shares) |
1,300,000 |
1,546,000 |
||||||||||||||
10,348,844 |
11,511,191 |
11,757,191 |
||||||||||||||
BFN Operations LLC (3%)* |
Wholesale Grower and Distributor of Container Grown Shrubs, Trees and Plants |
Subordinated Note (13% Cash, 4% PIK, Due 03/16) |
18,458,051 |
18,198,885 |
16,151,000 |
|||||||||||
18,458,051 |
18,198,885 |
16,151,000 |
||||||||||||||
Botanical Laboratories, Inc. (0%)* |
Nutritional Supplement Manufacturing and Distribution |
Common Stock Warrants (998,680 shares) |
237,301 |
240,000 |
||||||||||||
237,301 |
240,000 |
|||||||||||||||
Cafe Enterprises, Inc. (2%)* |
Restaurant |
Subordinated Note (12% Cash, 2% PIK, Due 09/19) |
12,251,729 |
12,044,609 |
12,044,609 |
|||||||||||
Series C Preferred Stock (10,000 shares) |
1,000,000 |
1,000,000 |
||||||||||||||
12,251,729 |
13,044,609 |
13,044,609 |
||||||||||||||
Capital Contractors, Inc. (1%)* |
Janitorial and Facilities Maintenance Services |
Subordinated Notes (12% Cash, 2% PIK, Due 12/15) (5)
|
9,810,268 |
9,583,888 |
5,456,000 |
|||||||||||
Common Stock Warrants (20 shares) |
492,000 |
— |
||||||||||||||
9,810,268 |
10,075,888 |
5,456,000 |
||||||||||||||
Carolina Beverage Group, LLC (0%)* |
Beverage Manufacturing and Packaging |
Class B Units (11,974 units) |
119,735 |
95,000 |
||||||||||||
119,735 |
95,000 |
|||||||||||||||
Chromaflo Technologies Parent LP (2%)* |
Colorant Manufacturer and Distributor |
Second Lien Term Loan (8.3% Cash, Due 06/20) |
10,000,000 |
9,957,674 |
9,957,674 |
|||||||||||
Class A Units (22,561 units) |
906,604 |
1,863,000 |
||||||||||||||
10,000,000 |
10,864,278 |
11,820,674 |
||||||||||||||
Comverge, Inc. (3%)* |
Provider of Intelligent Energy Management Solutions |
Senior Note (12% Cash, Due 05/18) |
15,505,583 |
15,311,556 |
15,311,556 |
|||||||||||
Preferred Stock (703 shares) |
554,458 |
528,000 |
||||||||||||||
Common Stock (1,000,000 shares) |
100,000 |
— |
||||||||||||||
15,505,583 |
15,966,014 |
15,839,556 |
||||||||||||||
Continental Anesthesia Management, LLC (2%)* |
Physicians Management Services |
Subordinated Note (10% Cash, 4% PIK Due 04/15) |
10,360,133 |
10,353,525 |
10,353,525 |
|||||||||||
Warrant (263 shares) |
276,100 |
42,000 |
||||||||||||||
10,360,133 |
10,629,625 |
10,395,525 |
||||||||||||||
CPower Ultimate HoldCo, LLC (0%)* |
Demand Response Business |
Units (345,542 units) |
345,542 |
345,542 |
||||||||||||
345,542 |
345,542 |
|||||||||||||||
CRS Reprocessing, LLC (2%)* |
Fluid Reprocessing Services |
Senior Note (3.7% cash, Due 06/15) |
1,140,000 |
1,140,000 |
1,140,000 |
|||||||||||
Subordinated Note (14% PIK, Due 11/15)(6)
|
16,103,741 |
14,726,015 |
5,631,000 |
|||||||||||||
Subordinated Note (14% PIK, Due 11/15)(6)
|
14,720,633 |
12,705,812 |
3,032,000 |
|||||||||||||
Series C Preferred Units (30 units) |
288,342 |
— |
||||||||||||||
Common Unit Warrant (1,406 units) |
1,759,556 |
— |
||||||||||||||
Series D Preferred Units (16 units) |
107,074 |
— |
||||||||||||||
Series E Preferred Units (5 units) |
31,651 |
— |
||||||||||||||
31,964,374 |
30,758,450 |
9,803,000 |
||||||||||||||
7
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Schedule of Investments
March 31, 2015
| ||||||||||||||||
Portfolio Company |
Industry |
Type of Investment(1)(2)
|
Principal
Amount
|
Cost |
Fair
Value(3)
|
|||||||||||
CWS Acquisition Corp. (3%)* |
Manufacturer of Custom Windows and Sliding Doors |
Subordinated Note (11% Cash, 2% PIK, Due 01/20) |
$ |
16,319,218 |
$ |
16,066,731 |
$ |
16,066,731 |
||||||||
1,500,000 Class A Units |
1,500,000 |
1,500,000 |
||||||||||||||
16,319,218 |
17,566,731 |
17,566,731 |
||||||||||||||
Danville Materials, LLC (2%)* |
Manufacturer of Dental Products |
Subordinated Note (10% Cash, Due 12/18) |
8,000,000 |
7,875,121 |
7,875,121 |
|||||||||||
Common Units (45,492 units) |
500,000 |
643,000 |
||||||||||||||
8,000,000 |
8,375,121 |
8,518,121 |
||||||||||||||
DataSource Incorporated (1%)* |
Print Supply Chain Management Services |
Subordinated Note (12% Cash, 2% PIK, Due 01/18) |
4,889,360 |
4,840,630 |
4,840,630 |
|||||||||||
Common Units (47 units) |
1,000,000 |
973,000 |
||||||||||||||
4,889,360 |
5,840,630 |
5,813,630 |
||||||||||||||
DCWV Acquisition Corporation
(1%)*
|
Arts & Crafts and Home Decor Products Designer and Supplier |
Subordinated Note (12% Cash, 3% PIK, Due 09/17) (5)
|
6,567,220 |
6,172,631 |
4,233,000 |
|||||||||||
Series A Preferred Equity (1,200 shares) |
1,200,000 |
— |
||||||||||||||
6,567,220 |
7,372,631 |
4,233,000 |
||||||||||||||
DialogDirect, Inc. (5%)* |
Business Process Outsourcing Provider |
Subordinated Note (12% Cash, 1.5% PIK, Due 04/20) |
24,157,449 |
23,933,506 |
23,933,506 |
|||||||||||
24,157,449 |
23,933,506 |
23,933,506 |
||||||||||||||
DLC Acquisition, LLC (4%)* |
Staffing Firm |
Senior Note (10% Cash, Due 07/19) |
22,750,000 |
22,334,936 |
22,334,936 |
|||||||||||
22,750,000 |
22,334,936 |
22,334,936 |
||||||||||||||
DLR Restaurants, LLC (0%)* |
Restaurant |
Royalty Rights |
— |
— |
||||||||||||
— |
— |
|||||||||||||||
Dyno Acquiror, Inc. (1%)* |
Sewing Products and Seasonal Decorative Products Supplier |
Subordinated Note (12% Cash, 2% PIK, Due 11/18) |
7,272,506 |
7,169,915 |
7,169,915 |
|||||||||||
Series A Units (600,000 units) |
600,000 |
365,000 |
||||||||||||||
7,272,506 |
7,769,915 |
7,534,915 |
||||||||||||||
Eckler's Holdings, Inc. (1%)* |
Restoration Parts and Accessories for Classic Cars and Trucks |
Subordinated Note (11% Cash, 4% PIK, Due 07/18) (6)
|
7,659,663 |
7,262,454 |
5,552,000 |
|||||||||||
Common Stock (18,029 shares) |
183,562 |
— |
||||||||||||||
Preferred Stock A (1,596 shares) |
1,596,126 |
— |
||||||||||||||
7,659,663 |
9,042,142 |
5,552,000 |
||||||||||||||
Electronic Systems Protection, Inc. (0%)* |
Power Protection Systems Manufacturing |
Common Stock (570 shares) |
285,000 |
510,000 |
||||||||||||
285,000 |
510,000 |
|||||||||||||||
FCL Graphics, Inc. (0%)* |
Commercial Printing Services |
Senior Note (4.7% Cash, Due 09/16) |
1,177,961 |
1,177,961 |
1,150,000 |
|||||||||||
Senior Note (7.8% Cash, 2% PIK, Due 09/16) (5)
|
1,225,946 |
1,207,439 |
— |
|||||||||||||
2,403,907 |
2,385,400 |
1,150,000 |
||||||||||||||
Flowchem Ltd. (2%)* |
Provider of Support Services to Crude Oil Pipeline Operators |
Subordinated Note (11% Cash, 2% PIK, Due 06/19) |
7,956,475 |
7,829,058 |
7,829,058 |
|||||||||||
Common Units (1,000,000 units) |
914,835 |
1,305,000 |
||||||||||||||
7,956,475 |
8,743,893 |
9,134,058 |
||||||||||||||
FrontStream Payments, Inc. (2%)* |
Payment and Donation Management Product Service Provider |
Senior Note (12% Cash, 2% PIK, Due 08/18) |
11,570,325 |
11,407,798 |
11,407,798 |
|||||||||||
11,570,325 |
11,407,798 |
11,407,798 |
||||||||||||||
Frontstreet Facility Solutions, Inc. (1%)* |
Retail, Restaurant and Commercial Facilities Maintenance |
Subordinated Note (13% Cash Due 07/18) |
8,462,629 |
8,373,882 |
4,219,000 |
|||||||||||
Series A Convertible Preferred Units (2,500 units) |
250,000 |
— |
||||||||||||||
Series B Convertible Preferred Units (5,556 units) |
500,000 |
— |
||||||||||||||
8,462,629 |
9,123,882 |
4,219,000 |
||||||||||||||
Frozen Specialties, Inc. (2%)* |
Frozen Foods Manufacturer |
Subordinated Note (10% Cash, 4% PIK, Due 05/17) |
12,739,823 |
12,739,823 |
10,436,000 |
|||||||||||
12,739,823 |
12,739,823 |
10,436,000 |
||||||||||||||
Garden Fresh Restaurant Holding, LLC (0%)* |
Restaurant |
Class A Units (5,000 units) |
500,000 |
27,000 |
||||||||||||
500,000 |
27,000 |
|||||||||||||||
Gilchrist & Soames, Inc. (7%)* |
Manufacturer of Personal Care Products |
Split Collateral Term Loan (10% Cash, 1.5% PIK, Due 11/19) |
35,020,657 |
34,516,209 |
34,516,209 |
|||||||||||
35,020,657 |
34,516,209 |
34,516,209 |
||||||||||||||
8
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Schedule of Investments
March 31, 2015
| ||||||||||||||||
Portfolio Company |
Industry |
Type of Investment(1)(2)
|
Principal
Amount
|
Cost |
Fair
Value(3)
|
|||||||||||
GST AutoLeather, Inc. (4%)* |
Supplier of Automotive Interior Leather |
Subordinated Note (11% Cash, 2% PIK, Due 01/21) |
$ |
22,324,245 |
$ |
21,917,045 |
$ |
21,917,045 |
||||||||
22,324,245 |
21,917,045 |
21,917,045 |
||||||||||||||
Hatch Chile Co., LLC (1%)* |
Food Products Distributor |
Subordinated Note (19% Cash, Due 11/18) |
2,913,750 |
2,905,314 |
2,905,314 |
|||||||||||
Subordinated Note (14% Cash, Due 11/18) |
3,191,250 |
3,020,811 |
3,020,811 |
|||||||||||||
Unit Purchase Warrant (7,817 units) |
295,800 |
540,000 |
||||||||||||||
6,105,000 |
6,221,925 |
6,466,125 |
||||||||||||||
Hickman's Egg Ranch, Inc. (3%)* |
Egg Producer |
Subordinated Note (12% Cash, Due 06/19) |
15,049,229 |
14,783,739 |
14,783,739 |
|||||||||||
15,049,229 |
14,783,739 |
14,783,739 |
||||||||||||||
HKW Capital Partners IV, L.P.
(0%)*(4)
|
Multi-Sector Holdings |
0.6% Limited Partnership Interest |
791,757 |
686,000 |
||||||||||||
791,757 |
686,000 |
|||||||||||||||
HTC Borrower, LLC (5%)* |
Hunting and Outdoor Products |
Subordinated Note, (10% Cash, 3% PIK, Due 09/20) |
25,047,916 |
24,672,916 |
24,672,916 |
|||||||||||
25,047,916 |
24,672,916 |
24,672,916 |
||||||||||||||
Huron, Inc. (3%)* |
Parts Supplier to Automotive Industry |
Subordinated Note (10% Cash, 3% PIK, Due 08/18) |
13,854,096 |
13,795,784 |
13,795,784 |
|||||||||||
13,854,096 |
13,795,784 |
13,795,784 |
||||||||||||||
Inland Pipe Rehabilitation Holding Company LLC (2%)* |
Cleaning and Repair Services |
Subordinated Note (13% Cash, 2.5% PIK, Due 12/16) |
8,658,501 |
8,618,090 |
8,618,090 |
|||||||||||
Membership Interest Purchase Warrant (3%) |
853,500 |
1,445,000 |
||||||||||||||
8,658,501 |
9,471,590 |
10,063,090 |
||||||||||||||
IOS Holding Company, LLC (0%)* |
Inspections and Repair Services for Oil Industry |
Common Units (7,314 Class A Units) |
356,074 |
301,000 |
||||||||||||
356,074 |
301,000 |
|||||||||||||||
Justrite Manufacturing Company, LLC (3%)* |
Storage Product Developer and Supplier for Hazardous Materials |
Subordinated Note (10% Cash, 2% PIK, Due 07/19) |
14,851,345 |
14,673,455 |
14,673,455 |
|||||||||||
Class A Common Units (1,268 units) |
118,110 |
180,000 |
||||||||||||||
Class A Preferred Units (132 units) |
131,890 |
174,000 |
||||||||||||||
14,851,345 |
14,923,455 |
15,027,455 |
||||||||||||||
Magpul Industries Corp. (1%)* |
Firearm Accessories Manufacturer and Distributor |
Preferred Units (1,470 units) |
1,470,000 |
2,375,000 |
||||||||||||
Common Units (30,000 units) |
30,000 |
1,139,000 |
||||||||||||||
1,500,000 |
3,514,000 |
|||||||||||||||
Media Storm, LLC (2%)* |
Marketing Services |
Subordinated Note (10% Cash, Due 08/19) |
6,545,455 |
6,510,152 |
6,510,152 |
|||||||||||
Membership Units (1,216,204 units) |
1,176,957 |
1,327,000 |
||||||||||||||
6,545,455 |
7,687,109 |
7,837,152 |
||||||||||||||
Micross Solutions LLC (5%)* |
Provider of Semiconductor Products and Services |
Subordinated Note (12% Cash, 3% PIK, Due 06/18) |
23,165,653 |
22,983,382 |
22,983,382 |
|||||||||||
Class A-2 Common Units (1,979,524 units) |
2,019,693 |
2,019,693 |
||||||||||||||
23,165,653 |
25,003,075 |
25,003,075 |
||||||||||||||
My Alarm Center, LLC (0%)* |
Security Company |
Preferred Units (2,000,000 units) |
2,000,000 |
1,890,000 |
||||||||||||
2,000,000 |
1,890,000 |
|||||||||||||||
Nautic Partners VII, LP (0%)* |
Multi-Sector Holdings |
0.4% Limited Partnership Interest |
244,397 |
361,000 |
||||||||||||
244,397 |
361,000 |
|||||||||||||||
Nomacorc, LLC (4%)* |
Synthetic Wine Cork Producer |
Subordinated Note (10% Cash, 1.75% PIK, Due 07/21) |
20,083,611 |
19,694,718 |
19,694,718 |
|||||||||||
Limited Partnership Interest |
1,940,588 |
1,940,588 |
||||||||||||||
20,083,611 |
21,635,306 |
21,635,306 |
||||||||||||||
On Event Services, LLC (3%)* |
Equipment Rentals |
Subordinated Note (10% Cash, 2% PIK, Due 02/20) |
17,212,851 |
16,917,692 |
16,917,692 |
|||||||||||
Warrant to Purchase Units (4%) |
850,000 |
850,000 |
||||||||||||||
17,212,851 |
17,767,692 |
17,767,692 |
||||||||||||||
9
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Schedule of Investments
March 31, 2015
| ||||||||||||||||
Portfolio Company |
Industry |
Type of Investment(1)(2)
|
Principal
Amount
|
Cost |
Fair
Value(3)
|
|||||||||||
Orchid Underwriters Agency, LLC (5%)* |
Insurance Underwriter |
Subordinated Note (10% Cash, Due 11/19) |
$ |
22,885,000 |
$ |
22,456,862 |
$ |
22,456,862 |
||||||||
Class A Preferred Units (15,000 units) |
1,500,000 |
1,500,000 |
||||||||||||||
Class A Common Units (15,000 units) |
— |
— |
||||||||||||||
22,885,000 |
23,956,862 |
23,956,862 |
||||||||||||||
Performance Health & Wellness Holdings, Inc. (1%)* |
Rehabilitation and Wellness Products |
Class A Limited Partnership Units (15,000 units) |
1,500,000 |
2,622,000 |
||||||||||||
1,500,000 |
2,622,000 |
|||||||||||||||
PowerDirect Marketing, LLC (1%)* |
Marketing Services |
Subordinated Note (13% Cash, 2% PIK, Due 12/16)(6)
|
7,821,994 |
6,627,482 |
3,595,000 |
|||||||||||
Common Unit Purchase Warrants |
590,200 |
— |
||||||||||||||
7,821,994 |
7,217,682 |
3,595,000 |
||||||||||||||
Sheplers, Inc. (3%)* |
Western Apparel Retailer |
Subordinated Note (13.2% Cash, Due 12/16) |
8,750,000 |
8,657,015 |
8,657,015 |
|||||||||||
Subordinated Note (10% Cash, 7% PIK, Due 12/17) |
4,704,000 |
4,673,453 |
4,673,453 |
|||||||||||||
13,454,000 |
13,330,468 |
13,330,468 |
||||||||||||||
SPC Partners V, LP (0%)*(4)
|
Multi-Sector Holdings |
0.7% Limited Partnership Interest |
725,083 |
672,000 |
||||||||||||
725,083 |
672,000 |
|||||||||||||||
Specialized Desanders, Inc. (3%)* (4)
|
Sand and Particulate Removal Equipment Provider for Oil and Gas Companies |
Subordinated Note (12% Cash, 2% PIK, Due 03/20) |
16,110,043 |
15,884,925 |
13,221,059 |
|||||||||||
LLP Units (2,000,000 units) |
1,937,421 |
4,554,000 |
||||||||||||||
16,110,043 |
17,822,346 |
17,775,059 |
||||||||||||||
Stella Environmental Services, LLC (0%)* |
Waste Transfer Stations |
Common Stock Purchase Warrants (2,500 shares) |
20,000 |
1,734,000 |
||||||||||||
20,000 |
1,734,000 |
|||||||||||||||
TACH Holdings, Inc. (f/k/a Trinity Consultants Holdings, Inc.) (3%)* |
Air Quality Consulting Services |
Subordinated Note (10% Cash, 3% PIK, Due 08/20) |
15,288,008 |
15,169,022 |
15,169,022 |
|||||||||||
Series A1 Preferred Stock (10,000 units) |
— |
137,000 |
||||||||||||||
Common Stock (50,000 units) |
50,000 |
1,231,000 |
||||||||||||||
15,288,008 |
15,219,022 |
16,537,022 |
||||||||||||||
Tate's Bake Shop (2%)* |
Producer of Baked Goods |
Subordinated Note (10% Cash, 3% PIK, Due 02/20) |
10,181,006 |
9,995,038 |
9,995,038 |
|||||||||||
Limited Partnership Investment |
999,000 |
1,141,000 |
||||||||||||||
10,181,006 |
10,994,038 |
11,136,038 |
||||||||||||||
TCFI Merlin LLC (3%)* |
Specialty Staffing Service Provider |
Senior Note (10% Cash, 1% PIK, Due 09/19) |
15,079,763 |
14,803,546 |
14,803,546 |
|||||||||||
Limited Partnership Units (500,000 units) |
500,000 |
500,000 |
||||||||||||||
15,079,763 |
15,303,546 |
15,303,546 |
||||||||||||||
The Cook & Boardman Group, LLC (3%)* |
Distributor of Doors and Related Products |
Subordinated Note (10% Cash, 2.5% PIK, Due 03/20) |
14,196,209 |
13,935,854 |
13,935,854 |
|||||||||||
Class A Units (1,400,000 units) |
1,400,000 |
1,568,000 |
||||||||||||||
14,196,209 |
15,335,854 |
15,503,854 |
||||||||||||||
The Krystal Company (1%)* |
Restaurant |
Class A Units of Limited Partnership (2,000 units) |
638,260 |
2,854,000 |
||||||||||||
638,260 |
2,854,000 |
|||||||||||||||
Top Knobs USA, Inc. (0%)* |
Hardware Designer and Distributor |
Common Stock (26,593 shares) |
333,994 |
1,425,000 |
||||||||||||
333,994 |
1,425,000 |
|||||||||||||||
United Biologics, LLC (2%)* |
Allergy Immunotherapy |
Subordinated Note (12% Cash, 2% PIK, Due 03/17) |
12,435,286 |
11,910,206 |
11,910,206 |
|||||||||||
Class A Common Stock (177,935 shares) |
1,999,989 |
861,000 |
||||||||||||||
Class A-1 Common Stock (18,818 shares) |
137,324 |
137,000 |
||||||||||||||
Class A-1 Common Kicker Stock (14,114 shares) |
— |
— |
||||||||||||||
Class A, Class A-1, Class A-1 Kicker & Class B Unit Purchase Warrants |
838,117 |
202,000 |
||||||||||||||
12,435,286 |
14,885,636 |
13,110,206 |
||||||||||||||
Water Pik, Inc. (2%)* |
Oral Health and Shower Head Supplier |
Second Lien Term Loan (9.8% Cash, Due 01/21) |
8,315,789 |
8,023,702 |
8,023,702 |
|||||||||||
8,315,789 |
8,023,702 |
8,023,702 |
||||||||||||||
10
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Schedule of Investments
March 31, 2015
| ||||||||||||||||
Portfolio Company |
Industry |
Type of Investment(1)(2)
|
Principal
Amount
|
Cost |
Fair
Value(3)
|
|||||||||||
Wheel Pros Holdings, Inc. (2%)* |
Wheel/Rim and Performance Tire Distributor |
Subordinated Note (11% Cash, Due 06/20) |
$ |
9,500,000 |
$ |
9,306,001 |
$ |
9,306,001 |
||||||||
Class A Units (2,000 units) |
2,000,000 |
2,432,000 |
||||||||||||||
9,500,000 |
11,306,001 |
11,738,001 |
||||||||||||||
WSO Holdings, LP (0%)* |
Organic/Fair Trade Sugar, Syrup, Nectar and Honey Producer |
Common Points (3,000 points) |
3,000,000 |
2,057,000 |
||||||||||||
3,000,000 |
2,057,000 |
|||||||||||||||