10-Q: Quarterly report pursuant to Section 13 or 15(d)
Published on May 4, 2016
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, 2016
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 4, 2016 was 33,576,436.
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, 2016 |
December 31, 2015 |
||||||
(Unaudited) |
|||||||
Assets: |
|||||||
Investments at fair value: |
|||||||
Non-Control / Non-Affiliate investments (cost of $759,385,335 and $795,244,907 at March 31, 2016 and December 31, 2015, respectively) |
$ |
740,511,577 |
$ |
774,238,518 |
|||
Affiliate investments (cost of $167,897,411 and $171,486,103 at March 31, 2016 and December 31, 2015, respectively) |
173,842,446 |
177,581,965 |
|||||
Control investments (cost of $40,118,113 and $40,618,113 at March 31, 2016 and December 31, 2015, respectively) |
25,622,233 |
25,456,233 |
|||||
Total investments at fair value |
939,976,256 |
977,276,716 |
|||||
Cash and cash equivalents |
64,162,614 |
52,615,418 |
|||||
Interest and fees receivable |
6,783,399 |
4,892,146 |
|||||
Prepaid expenses and other current assets |
1,833,905 |
947,068 |
|||||
Deferred financing fees |
3,287,455 |
3,480,444 |
|||||
Property and equipment, net |
124,022 |
105,698 |
|||||
Total assets |
$ |
1,016,167,651 |
$ |
1,039,317,490 |
|||
Liabilities: |
|||||||
Accounts payable and accrued liabilities |
$ |
2,238,206 |
$ |
7,463,514 |
|||
Interest payable |
1,558,369 |
3,714,470 |
|||||
Taxes payable |
— |
735,498 |
|||||
Deferred income taxes |
4,551,800 |
4,988,317 |
|||||
Borrowings under credit facility |
128,109,192 |
131,256,669 |
|||||
Notes |
162,292,089 |
162,142,478 |
|||||
SBA-guaranteed debentures payable |
213,070,081 |
220,648,789 |
|||||
Total liabilities |
511,819,737 |
530,949,735 |
|||||
Commitments and contingencies (Note 7) |
|||||||
Net Assets: |
|||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 33,576,436 and 33,375,126 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively) |
33,576 |
33,375 |
|||||
Additional paid-in capital |
550,903,360 |
549,242,439 |
|||||
Investment income in excess of distributions |
7,628,164 |
16,127,141 |
|||||
Accumulated realized losses |
(25,227,115 |
) |
(25,813,329 |
) |
|||
Net unrealized depreciation |
(28,990,071 |
) |
(31,221,871 |
) |
|||
Total net assets |
504,347,914 |
508,367,755 |
|||||
Total liabilities and net assets |
$ |
1,016,167,651 |
$ |
1,039,317,490 |
|||
Net asset value per share |
$ |
15.02 |
$ |
15.23 |
See accompanying notes.
3
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Statements of Operations
Three Months
Ended
|
Three Months
Ended
|
|||||||
March 31, 2016 |
March 31, 2015 |
|||||||
Investment income: |
||||||||
Interest income: |
||||||||
Non-Control / Non-Affiliate investments |
$ |
18,182,654 |
$ |
16,958,700 |
||||
Affiliate investments |
3,384,369 |
4,191,349 |
||||||
Control investments |
193,616 |
— |
||||||
Total interest income |
21,760,639 |
21,150,049 |
||||||
Dividend income: |
||||||||
Non-Control / Non-Affiliate investments |
(1,246,760 |
) |
1,588,705 |
|||||
Affiliate investments |
160,055 |
256,253 |
||||||
Total dividend income |
(1,086,705 |
) |
1,844,958 |
|||||
Fee and other income: |
||||||||
Non-Control / Non-Affiliate investments |
1,623,886 |
3,237,346 |
||||||
Affiliate investments |
310,015 |
496,957 |
||||||
Control investments |
100,000 |
100,000 |
||||||
Total fee and other income |
2,033,901 |
3,834,303 |
||||||
Payment-in-kind interest income: |
||||||||
Non-Control / Non-Affiliate investments |
2,921,604 |
2,728,323 |
||||||
Affiliate investments |
989,213 |
1,169,001 |
||||||
Control investments |
— |
— |
||||||
Total payment-in-kind interest income |
3,910,817 |
3,897,324 |
||||||
Interest income from cash and cash equivalents |
37,218 |
52,936 |
||||||
Total investment income |
26,655,870 |
30,779,570 |
||||||
Operating expenses: |
||||||||
Interest and other financing fees |
6,518,570 |
6,432,455 |
||||||
Compensation expenses |
9,450,493 |
5,408,623 |
||||||
General and administrative expenses |
1,088,724 |
1,168,913 |
||||||
Total operating expenses |
17,057,787 |
13,009,991 |
||||||
Net investment income |
9,598,083 |
17,769,579 |
||||||
Realized and unrealized gains (losses) on investments and foreign currency borrowings: |
||||||||
Net realized gains: |
||||||||
Non-Control / Non-Affiliate investments |
584,787 |
3,236,669 |
||||||
Affiliate investments |
1,427 |
27,702 |
||||||
Net realized gains |
586,214 |
3,264,371 |
||||||
Net unrealized appreciation (depreciation): |
||||||||
Investments |
3,084,323 |
(13,715,840 |
) |
|||||
Foreign currency borrowings |
(852,523 |
) |
1,173,707 |
|||||
Net unrealized appreciation (depreciation) |
2,231,800 |
(12,542,133 |
) |
|||||
Net realized and unrealized gains (losses) on investments and foreign currency borrowings |
2,818,014 |
(9,277,762 |
) |
|||||
Benefit (provision) for taxes |
11,161 |
(137,875 |
) |
|||||
Net increase in net assets resulting from operations |
$ |
12,427,258 |
$ |
8,353,942 |
||||
Net investment income per share—basic and diluted |
$ |
0.29 |
$ |
0.54 |
||||
Net increase in net assets resulting from operations per share—basic and diluted |
$ |
0.37 |
$ |
0.25 |
||||
Dividends/distributions per share: |
||||||||
Regular quarterly dividends/distributions |
$ |
0.54 |
$ |
0.54 |
||||
Supplemental dividends/distributions |
— |
0.05 |
||||||
Total dividends/distributions per share |
$ |
0.54 |
$ |
0.59 |
||||
Weighted average shares outstanding—basic and diluted |
33,480,346 |
33,099,197 |
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, 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 |
Common Stock |
Additional
Paid-In
Capital
|
Investment
Income
in Excess of Distributions
|
Accumulated
Realized
Gains (Losses) on Investments |
Net
Unrealized
Appreciation (Depreciation) |
Total
Net
Assets
|
|||||||||||||||||||||
Number
of Shares
|
Par
Value
|
|||||||||||||||||||||||||
Balance, December 31, 2015 |
33,375,126 |
$ |
33,375 |
$ |
549,242,439 |
$ |
16,127,141 |
$ |
(25,813,329 |
) |
$ |
(31,221,871 |
) |
$ |
508,367,755 |
|||||||||||
Net investment income |
— |
— |
— |
9,598,083 |
— |
— |
9,598,083 |
|||||||||||||||||||
Stock-based compensation |
— |
— |
4,301,118 |
— |
— |
— |
4,301,118 |
|||||||||||||||||||
Realized gain (loss) on investments |
— |
— |
— |
— |
586,214 |
(351,458 |
) |
234,756 |
||||||||||||||||||
Net unrealized loss on investments / foreign currency |
— |
— |
— |
— |
— |
2,583,258 |
2,583,258 |
|||||||||||||||||||
Tax benefit |
— |
— |
— |
11,161 |
— |
— |
11,161 |
|||||||||||||||||||
Dividends / distributions |
42,694 |
42 |
844,036 |
(18,108,221 |
) |
— |
— |
(17,264,143 |
) |
|||||||||||||||||
Issuance of restricted stock |
351,000 |
351 |
(351 |
) |
— |
— |
— |
— |
||||||||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock |
(192,384 |
) |
(192 |
) |
(3,483,882 |
) |
— |
— |
— |
(3,484,074 |
) |
|||||||||||||||
Balance, March 31, 2016 |
33,576,436 |
$ |
33,576 |
$ |
550,903,360 |
$ |
7,628,164 |
$ |
(25,227,115 |
) |
$ |
(28,990,071 |
) |
$ |
504,347,914 |
See accompanying notes.
5
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Statements of Cash Flows
Three Months Ended |
Three Months Ended |
||||||
March 31, 2016 |
March 31, 2015 |
||||||
Cash flows from operating activities: |
|||||||
Net increase in net assets resulting from operations |
$ |
12,427,258 |
$ |
8,353,942 |
|||
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: |
|||||||
Purchases of portfolio investments |
(11,812,331 |
) |
(98,213,197 |
) |
|||
Repayments received/sales of portfolio investments |
53,620,680 |
97,094,750 |
|||||
Loan origination and other fees received |
274,158 |
1,606,861 |
|||||
Net realized gain on investments |
(586,214 |
) |
(3,264,371 |
) |
|||
Net unrealized depreciation appreciation on investments |
(2,647,804 |
) |
13,870,791 |
||||
Net unrealized depreciation (appreciation) on foreign currency borrowings |
852,523 |
(1,173,707 |
) |
||||
Deferred income taxes |
(436,517 |
) |
(154,951 |
) |
|||
Payment-in-kind interest accrued, net of payments received |
(317,840 |
) |
810,547 |
||||
Amortization of deferred financing fees |
531,993 |
511,864 |
|||||
Accretion of loan origination and other fees |
(1,135,001 |
) |
(1,960,200 |
) |
|||
Accretion of loan discounts |
(95,188 |
) |
(133,149 |
) |
|||
Accretion of discount on SBA-guaranteed debentures payable |
31,899 |
46,222 |
|||||
Depreciation expense |
15,592 |
15,169 |
|||||
Stock-based compensation |
4,301,118 |
1,642,297 |
|||||
Changes in operating assets and liabilities: |
|||||||
Interest and fees receivable |
(1,891,253 |
) |
203,433 |
||||
Prepaid expenses and other current assets |
(886,837 |
) |
(176,764 |
) |
|||
Accounts payable and accrued liabilities |
(5,225,308 |
) |
(4,031,030 |
) |
|||
Interest payable |
(2,156,101 |
) |
(1,929,865 |
) |
|||
Taxes payable |
(735,498 |
) |
(2,450,029 |
) |
|||
Net cash provided by operating activities |
44,129,329 |
10,668,613 |
|||||
Cash flows from investing activities: |
|||||||
Purchases of property and equipment |
(33,916 |
) |
(21,843 |
) |
|||
Net cash used in investing activities |
(33,916 |
) |
(21,843 |
) |
|||
Cash flows from financing activities: |
|||||||
Repayments of SBA-guaranteed debentures payable |
(7,800,000 |
) |
— |
||||
Borrowings under credit facility |
30,000,000 |
8,000,000 |
|||||
Repayments of credit facility |
(34,000,000 |
) |
(48,000,000 |
) |
|||
Proceeds from notes |
— |
83,565,582 |
|||||
Net expenses related to public offering of common stock |
— |
(54,967 |
) |
||||
Common stock withheld for payroll taxes upon vesting of restricted stock |
(3,484,074 |
) |
(2,400,352 |
) |
|||
Cash dividends/distributions paid |
(17,264,143 |
) |
(18,752,101 |
) |
|||
Net cash provided by (used in) financing activities |
(32,548,217 |
) |
22,358,162 |
||||
Net increase in cash and cash equivalents |
11,547,196 |
33,004,932 |
|||||
Cash and cash equivalents, beginning of period |
52,615,418 |
78,759,026 |
|||||
Cash and cash equivalents, end of period |
$ |
64,162,614 |
$ |
111,763,958 |
|||
Supplemental disclosure of cash flow information: |
|||||||
Cash paid for interest |
$ |
7,932,474 |
$ |
7,644,734 |
|||
Summary of non-cash financing transactions: |
|||||||
Dividends/distributions paid through DRIP share issuances |
$ |
844,078 |
$ |
830,046 |
See accompanying notes.
6
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Schedule of Investments
March 31, 2016
| ||||||||||||||||
Portfolio Company |
Industry |
Type of Investment(1)(2)(7)
|
Principal
Amount
|
Cost |
Fair
Value(3)
|
|||||||||||
Non–Control / Non–Affiliate Investments: |
||||||||||||||||
Access Medical Acquisition, Inc. (3%)* |
Operator of Primary Care Clinics |
Subordinated Notes (10% Cash, 2% PIK, Due 01/22) |
$ |
13,819,514 |
$ |
13,568,000 |
$ |
13,568,000 |
||||||||
Class A Units (1,500,000 units) |
1,500,000 |
2,905,000 |
||||||||||||||
13,819,514 |
15,068,000 |
16,473,000 |
||||||||||||||
ADCS Clinics, LLC (3%)* |
Operator of Dermatology Clinics |
Subordinated Notes (11% Cash, 2% PIK, Due 05/20) |
14,106,030 |
13,844,110 |
13,844,110 |
|||||||||||
14,106,030 |
13,844,110 |
13,844,110 |
||||||||||||||
Agilex Flavors & Fragrances, Inc. (3%)* |
Custom Fragrance Producer |
Subordinated Note (12% Cash, 1.5% PIK, Due 06/19) |
13,139,109 |
12,990,382 |
12,990,382 |
|||||||||||
Common Units (1,250 units) |
1,250,000 |
2,585,000 |
||||||||||||||
13,139,109 |
14,240,382 |
15,575,382 |
||||||||||||||
AGM Automotive, LLC (1%)* |
Auto Industry Interior Components Supplier |
Units (1,500,000 units) |
630,134 |
2,623,000 |
||||||||||||
630,134 |
2,623,000 |
|||||||||||||||
All Metals Holding, LLC (1%)* |
Steel Processor and Distributor |
Subordinated Note (11% Cash, Due 03/21) |
6,033,333 |
5,764,084 |
5,764,084 |
|||||||||||
Bridge Note (14% PIK, Due 11/16) |
575,000 |
560,625 |
560,625 |
|||||||||||||
Units (83,025 units) |
253,000 |
322,000 |
||||||||||||||
6,608,333 |
6,577,709 |
6,646,709 |
||||||||||||||
Applied-Cleveland Holdings, Inc. (5%)* |
Oil and Gas Pipeline Infrastructure Inspection Services |
Subordinated Notes (10% Cash, 2% PIK, Due 06/19) |
23,589,606 |
23,352,205 |
23,352,205 |
|||||||||||
Class A Units (2,129,032 units) |
2,129,032 |
2,622,000 |
||||||||||||||
23,589,606 |
25,481,237 |
25,974,205 |
||||||||||||||
Audio and Video Labs Holdings, Inc. (2%)* |
Manufacturer and Distributor for Independent Artists and Authors |
Subordinated Notes (12% Cash, 2% PIK, Due 06/18) |
10,561,242 |
10,460,462 |
10,460,462 |
|||||||||||
Common Stock (138 shares) |
1,300,000 |
1,750,000 |
||||||||||||||
10,561,242 |
11,760,462 |
12,210,462 |
||||||||||||||
Avkem International, LLC (1%)* |
Flux and Foundry Manufacturer and Supplier |
Subordinated Note (10% Cash, 4% PIK, Due 12/17) |
4,085,200 |
4,021,473 |
4,021,473 |
|||||||||||
4,085,200 |
4,021,473 |
4,021,473 |
||||||||||||||
Baker Hill Acquisition, LLC (3%)* |
Loan Origination Software Solutions Provider |
Subordinated Notes (12% Cash, Due 03/21) |
13,500,000 |
13,311,582 |
13,311,582 |
|||||||||||
Limited Partner Interest |
1,498,500 |
1,498,500 |
||||||||||||||
13,500,000 |
14,810,082 |
14,810,082 |
||||||||||||||
BFN Operations LLC (0%)* |
Wholesale Grower and Distributor of Shrubs, Trees and Plants |
First-Out Subordinated Note (17% PIK, Due 02/17)(6)
|
16,148,423 |
14,162,530 |
2,162,000 |
|||||||||||
Last-Out Subordinated Note (17% PIK, Due 02/17)(6)
|
2,199,576 |
1,957,027 |
— |
|||||||||||||
18,347,999 |
16,119,557 |
2,162,000 |
||||||||||||||
Cafe Enterprises, Inc. (3%)* |
Restaurant |
Subordinated Note (12% Cash, 2% PIK, Due 09/19) |
12,470,272 |
12,300,160 |
12,300,160 |
|||||||||||
Series C Preferred Stock (10,000 shares) |
1,000,000 |
1,190,000 |
||||||||||||||
12,470,272 |
13,300,160 |
13,490,160 |
||||||||||||||
Capital Contractors, Inc. (0%)* |
Janitorial and Facilities Maintenance Services |
Subordinated Notes (5% Cash, Due 12/16) |
9,843,542 |
9,691,284 |
2,516,000 |
|||||||||||
Series A Redeemable Preferred Stock (200 shares) |
2,000,000 |
— |
||||||||||||||
Common Stock Warrants (20 shares) |
492,000 |
— |
||||||||||||||
9,843,542 |
12,183,284 |
2,516,000 |
||||||||||||||
Captek Softgel International, Inc.
(3%)*
|
Nutraceutical Manufacturer |
Subordinated Note (10% Cash, 2.5% PIK, Due 06/21) |
15,116,805 |
14,827,199 |
14,827,199 |
|||||||||||
Common Stock (15,000 shares) |
1,500,000 |
1,500,000 |
||||||||||||||
15,116,805 |
16,327,199 |
16,327,199 |
||||||||||||||
Carolina Beverage Group, LLC (0%)* |
Beverage Manufacturing and Packaging |
Class B Units (11,974 units) |
119,735 |
261,000 |
||||||||||||
119,735 |
261,000 |
|||||||||||||||
Centerfield Media Holding Company (4%)* |
Digital Marketing |
Subordinated Note (10% Cash, 3.5% PIK, Due 03/21) |
18,362,644 |
18,029,462 |
18,029,462 |
|||||||||||
Common Shares (1,000 shares) |
1,000,000 |
1,216,000 |
||||||||||||||
18,362,644 |
19,029,462 |
19,245,462 |
||||||||||||||
Chromaflo Technologies Parent LP (2%)* |
Colorant Manufacturer and Distributor |
Second Lien Term Loan (8.3% Cash, Due 06/20) |
9,999,618 |
9,964,021 |
9,366,000 |
|||||||||||
Class A Units (22,561 units) |
906,604 |
2,281,000 |
||||||||||||||
9,999,618 |
10,870,625 |
11,647,000 |
||||||||||||||
7
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Schedule of Investments — (Continued)
March 31, 2016
| ||||||||||||||||
Portfolio Company |
Industry |
Type of Investment(1)(2)(7)
|
Principal
Amount
|
Cost |
Fair
Value(3)
|
|||||||||||
Community Intervention Services, Inc. (3%)* |
Provider of Behavioral Health Services |
Subordinated Note (10% Cash, 3% PIK, Due 01/21) |
$ |
15,685,061 |
$ |
15,407,588 |
$ |
14,568,002 |
||||||||
15,685,061 |
15,407,588 |
14,568,002 |
||||||||||||||
Comverge, Inc. (3%)* |
Provider of Intelligent Energy Management Solutions |
Senior Note (12% Cash, Due 05/18) |
15,505,583 |
15,363,530 |
15,363,530 |
|||||||||||
Preferred Stock (703 shares) |
554,458 |
620,000 |
||||||||||||||
Common Stock (1,000,000 shares) |
100,000 |
375,000 |
||||||||||||||
15,505,583 |
16,017,988 |
16,358,530 |
||||||||||||||
CPower Ultimate HoldCo, LLC (0%)* |
Demand Response Business |
Units (345,542 units) |
345,542 |
345,542 |
||||||||||||
345,542 |
345,542 |
|||||||||||||||
CWS Acquisition Corp. (0%)* |
Manufacturer of Custom Windows and Sliding Doors |
1,500,000 Class A Units |
1,500,000 |
1,500,000 |
||||||||||||
1,500,000 |
1,500,000 |
|||||||||||||||
Data Source Holdings, LLC (0%)* |
Print Supply Chain Management Services |
Common Units (47,503 units) |
1,000,000 |
800,000 |
||||||||||||
1,000,000 |
800,000 |
|||||||||||||||
DialogDirect, Inc. (5%)* |
Business Process Outsourcing Provider |
Subordinated Notes (12% Cash, 1.5% PIK, Due 04/20) |
24,528,436 |
24,339,359 |
24,339,359 |
|||||||||||
24,528,436 |
24,339,359 |
24,339,359 |
||||||||||||||
DLC Acquisition, LLC (8%)* |
Staffing Firm |
Senior Notes (10% Cash, Due 12/20) |
22,575,000 |
22,242,542 |
22,242,542 |
|||||||||||
Senior Note (10% Cash, 2% PIK, Due 12/20) |
18,706,162 |
18,456,340 |
18,456,340 |
|||||||||||||
41,281,162 |
40,698,882 |
40,698,882 |
||||||||||||||
DLR Restaurants, LLC (0%)* |
Restaurant |
Royalty Rights |
— |
— |
||||||||||||
— |
— |
|||||||||||||||
Dyno Acquiror, Inc. (2%)* |
Sewing Products and Seasonal Decorative Products Supplier |
Subordinated Note (12% Cash, 2% PIK, Due 11/19) |
7,419,297 |
7,341,823 |
7,341,823 |
|||||||||||
Series A Units (600,000 units) |
600,000 |
492,000 |
||||||||||||||
7,419,297 |
7,941,823 |
7,833,823 |
||||||||||||||
Eckler's Holdings, Inc. (2%)* |
Restoration Parts and Accessories for Classic Cars and Trucks |
Subordinated Note (11% Cash, 4.5% PIK, Due 07/18) |
9,607,507 |
9,526,502 |
8,727,000 |
|||||||||||
Common Stock (18,029 shares) |
183,562 |
— |
||||||||||||||
Series A Preferred Stock (1,596 shares) |
1,596,126 |
— |
||||||||||||||
Series B Preferred Stock (185 shares) |
185,127 |
29,000 |
||||||||||||||
9,607,507 |
11,491,317 |
8,756,000 |
||||||||||||||
FCL Holding SPV, LLC (0%)* |
Commercial Printing Services |
Class A Interest (24,873 units) |
292,000 |
450,000 |
||||||||||||
Class B Interest (48,427 units) |
— |
— |
||||||||||||||
Class C Interest (3,746 units) |
— |
— |
||||||||||||||
292,000 |
450,000 |
|||||||||||||||
Flowchem Ltd. (0%)* |
Services to Crude Oil Pipeline Operators |
Common Units (1,000,000 units) |
782,356 |
2,102,000 |
||||||||||||
782,356 |
2,102,000 |
|||||||||||||||
FrontStream Holdings, LLC (3%)* |
Payment and Donation Management Product Service Provider |
Subordinated Note (13.0% Cash, Due 12/20) |
13,375,000 |
13,237,946 |
13,237,946 |
|||||||||||
Series C-2 Preferred Shares (500 shares) |
500,000 |
500,000 |
||||||||||||||
13,375,000 |
13,737,946 |
13,737,946 |
||||||||||||||
Frontstreet Facility Solutions, Inc. (1%)* |
Retail, Restaurant and Commercial Facilities Maintenance |
Subordinated Note (11% Cash, 2% PIK, Due 07/18) |
8,462,629 |
8,398,394 |
6,745,000 |
|||||||||||
Series A Convertible Preferred Stock (2,500 shares) |
250,000 |
— |
||||||||||||||
Series B Convertible Preferred Stock (5,556 shares) |
500,000 |
— |
||||||||||||||
8,462,629 |
9,148,394 |
6,745,000 |
||||||||||||||
Frozen Specialties, Inc. (3%)* |
Frozen Foods Manufacturer |
Subordinated Note (10% Cash, 4% PIK, Due 12/17) |
13,265,864 |
13,265,864 |
14,465,864 |
|||||||||||
13,265,864 |
13,265,864 |
14,465,864 |
||||||||||||||
Garden Fresh Restaurant Holding, LLC (0%)* |
Restaurant |
Class A Units (5,000 units) |
500,000 |
— |
||||||||||||
500,000 |
— |
|||||||||||||||
GST AutoLeather, Inc. (4%)* |
Supplier of Automotive Interior Leather |
Subordinated Note (11% Cash, 2% PIK, Due 01/21) |
22,781,645 |
22,422,544 |
22,422,544 |
|||||||||||
22,781,645 |
22,422,544 |
22,422,544 |
||||||||||||||
Hatch Chile Co., LLC (0%)* |
Food Products Distributor |
Unit Purchase Warrant (7,817 units) |
295,800 |
1,542,000 |
||||||||||||
295,800 |
1,542,000 |
8
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Schedule of Investments — (Continued)
March 31, 2016
| ||||||||||||||||
Portfolio Company |
Industry |
Type of Investment(1)(2)(7)
|
Principal
Amount
|
Cost |
Fair
Value(3)
|
|||||||||||
HKW Capital Partners IV, L.P.
(0%)*(4)
|
Multi-Sector Holdings |
0.6% Limited Partnership Interest |
$ |
1,179,047 |
$ |
1,316,825 |
||||||||||
1,179,047 |
1,316,825 |
|||||||||||||||
HTC Borrower, LLC (5%)* |
Hunting and Outdoor Products |
Subordinated Notes (10% Cash, 3% PIK, Due 09/20) |
$ |
25,541,889 |
25,220,842 |
25,220,842 |
||||||||||
25,541,889 |
25,220,842 |
25,220,842 |
||||||||||||||
ICP Industrial, Inc. (4%)* |
Coatings Formulator and Manufacturer |
Subordinated Note (9.5% Cash, Due 04/22) |
7,500,000 |
7,429,074 |
7,429,074 |
|||||||||||
Subordinated Note (10% Cash, 1% PIK, Due 10/22) |
6,270,781 |
6,186,350 |
6,186,350 |
|||||||||||||
Subordinated Note (14% PIK, Due 10/22) |
3,986,894 |
3,951,208 |
3,951,208 |
|||||||||||||
Class A Units (1,249 units) |
1,695,080 |
1,695,080 |
||||||||||||||
17,757,675 |
19,261,712 |
19,261,712 |
||||||||||||||
Inland Pipe Rehabilitation Holding Company LLC (2%)* |
Cleaning and Repair Services |
Subordinated Notes (10% Cash, 5.5% PIK, Due 12/16) |
9,778,555 |
9,760,122 |
9,760,122 |
|||||||||||
Membership Interest Purchase Warrant (3%) |
853,500 |
511,000 |
||||||||||||||
9,778,555 |
10,613,622 |
10,271,122 |
||||||||||||||
KT Capital Partners, L.P. (0%)*(4)
|
Multi-Sector Holdings |
Subordinated Notes (10% PIK) |
754,000 |
374,000 |
754,000 |
|||||||||||
Subordinated Note (3.3% PIK)
|
161,000 |
81,000 |
161,000 |
|||||||||||||
4.2% Limited Partnership Interest |
380,000 |
754,000 |
||||||||||||||
915,000 |
835,000 |
1,669,000 |
||||||||||||||
Magpul Industries Corp. (1%)* |
Firearm Accessories Manufacturer and Distributor |
Preferred Units (1,470 units) |
1,470,000 |
2,720,000 |
||||||||||||
Common Units (30,000 units) |
30,000 |
4,697,000 |
||||||||||||||
1,500,000 |
7,417,000 |
|||||||||||||||
Media Storm, LLC (2%)* |
Marketing Services |
Subordinated Note (10% Cash, Due 08/19) |
6,545,455 |
6,523,237 |
6,523,237 |
|||||||||||
Membership Units (1,216,204 units) |
1,176,957 |
1,069,000 |
||||||||||||||
6,545,455 |
7,700,194 |
7,592,237 |
||||||||||||||
Micross Solutions LLC (5%)* |
Provider of Semiconductor Products and Services |
Subordinated Note (12% Cash, 3% PIK, Due 06/18) |
23,882,166 |
23,748,721 |
23,748,721 |
|||||||||||
Class A-2 Common Units (1,979,524 units) |
2,019,693 |
1,423,000 |
||||||||||||||
23,882,166 |
25,768,414 |
25,171,721 |
||||||||||||||
Motor Vehicle Software Corporation (4%)* |
Provider of EVR Services |
Subordinated Note (10% Cash, 1% PIK, Due 03/21) |
20,116,873 |
19,744,937 |
19,744,937 |
|||||||||||
Class A Units (1,000,000 units) |
1,064,960 |
1,064,960 |
||||||||||||||
20,116,873 |
20,809,897 |
20,809,897 |
||||||||||||||
My Alarm Center, LLC (0%)* |
Security Company |
Preferred Units (2,000,000 units) |
2,000,000 |
1,529,000 |
||||||||||||
2,000,000 |
1,529,000 |
|||||||||||||||
Nautic Partners VII, LP (0%)*(4)
|
Multi-Sector Holdings |
0.4% Limited Partnership Interest |
866,410 |
1,156,000 |
||||||||||||
866,410 |
1,156,000 |
|||||||||||||||
Nomacorc, LLC (4%)* |
Synthetic Wine Cork Producer |
Subordinated Note (10% Cash, 2.3% PIK, Due 07/21) |
20,521,158 |
20,179,543 |
17,128,000 |
|||||||||||
Limited Partnership Interest |
2,142,710 |
1,192,000 |
||||||||||||||
20,521,158 |
22,322,253 |
18,320,000 |
||||||||||||||
On Event Services, LLC (5%)* |
Equipment Rentals |
Subordinated Notes (10% Cash, 2% PIK, Due 06/20) |
21,714,667 |
21,056,932 |
21,056,932 |
|||||||||||
Warrant to Purchase Units (8.4%) |
1,902,000 |
3,379,000 |
||||||||||||||
21,714,667 |
22,958,932 |
24,435,932 |
||||||||||||||
Orchid Underwriters Agency, LLC (5%)* |
Insurance Underwriter |
Term B Note (10% Cash, Due 11/19) |
22,644,852 |
22,281,253 |
22,281,253 |
|||||||||||
Class A Preferred Units (15,000 units) |
1,500,000 |
1,791,000 |
||||||||||||||
Class A Common Units (15,000 units) |
— |
794,000 |
||||||||||||||
22,644,852 |
23,781,253 |
24,866,253 |
||||||||||||||
Performance Health & Wellness Holdings, Inc. (1%)* |
Rehabilitation and Wellness Products |
Class A Limited Partnership Units (15,000 units) |
210,076 |
3,533,000 |
||||||||||||
210,076 |
3,533,000 |
|||||||||||||||
PowerDirect Marketing, LLC (0%)* |
Marketing Services |
Subordinated Note (13% Cash, 2% PIK, Due 12/16)(6)
|
9,103,408 |
6,627,482 |
2,337,000 |
|||||||||||
Common Unit Purchase Warrants |
590,200 |
— |
||||||||||||||
9,103,408 |
7,217,682 |
2,337,000 |
||||||||||||||
9
TRIANGLE CAPITAL CORPORATION
Unaudited Consolidated Schedule of Investments — (Continued)
March 31, 2016
| ||||||||||||||||
Portfolio Company |
Industry |
Type of Investment(1)(2)(7)
|
Principal
Amount
|
Cost |
Fair
Value(3)
|
|||||||||||
Radiant Logistics, Inc. (3%)* |
Freight Logistics |
Subordinated Note (10.5% Cash, Due 04/21) |
$ |
15,000,000 |
$ |
14,736,457 |
$ |
15,450,000 |
||||||||
15,000,000 |
14,736,457 |
15,450,000 |
||||||||||||||
RockYou, Inc. (0%)* |
Mobile Game Advertising Network |
Common Stock (67,585 shares) |
111,000 |
111,000 |
||||||||||||
111,000 |
111,000 |
|||||||||||||||
Rotolo Consultants, Inc. (2%)* |
Landscape Services |
Subordinated Note (11% Cash, 3% PIK, Due 08/21) |
6,747,984 |
6,623,535 |
6,623,535 |
|||||||||||
Series A Preferred Units (39 units) |
3,654,253 |
2,485,000 |
||||||||||||||
6,747,984 |
10,277,788 |
9,108,535 |
||||||||||||||
SPC Partners V, LP (0%)*(4)
|
Multi-Sector Holdings |
0.7% Limited Partnership Interest |
1,605,759 |
1,563,000 |
||||||||||||
1,605,759 |
1,563,000 |
|||||||||||||||
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) |
16,172,616 |
15,992,051 |
12,994,902 |
|||||||||||
Class C Partnership Units (2,000,000 units) |
1,937,421 |
2,570,000 |
||||||||||||||
16,172,616 |
17,929,472 |
15,564,902 |
||||||||||||||
Tate's Bake Shop (2%)* |
Producer of Baked Goods |
Subordinated Note (10% Cash, 3% PIK, Due 02/20) |
10,495,096 |
10,339,359 |
10,339,359 |
|||||||||||
Limited Partner Interest |
925,000 |
1,246,000 |
||||||||||||||
10,495,096 |
11,264,359 |
11,585,359 |
||||||||||||||
TCFI Merlin LLC (3%)* |
Specialty Staffing Service Provider |
Senior Note (10% Cash, 1% PIK, Due 09/19) |
13,667,228 |
13,442,247 |
13,442,247 |
|||||||||||
Limited Partnership Units (500,000 units) |
500,000 |
500,000 |
||||||||||||||
13,667,228 |
13,942,247 |
13,942,247 |
||||||||||||||
The Cook & Boardman Group, LLC (3%)* |
Distributor of Doors and Related Products |
Subordinated Note (10% Cash, 2.5% PIK, Due 03/20) |
14,560,482 |
14,342,450 |
14,342,450 |
|||||||||||
Class A Units (1,400,000 units) |
1,400,000 |
2,081,000 |
||||||||||||||
14,560,482 |
15,742,450 |
16,423,450 |
||||||||||||||
The Krystal Company (1%)* |
Restaurant |
Class A Units of Limited Partnership (2,000 units) |
638,260 |
3,270,000 |
||||||||||||
638,260 |
3,270,000 |
|||||||||||||||
Top Knobs USA, Inc. (1%)* |
Hardware Designer and Distributor |
Common Stock (26,593 shares) |
333,994 |
2,647,000 |
||||||||||||
333,994 |
2,647,000 |
|||||||||||||||
United Biologics, LLC (2%)* |
Allergy Immunotherapy |
Subordinated Note (12% Cash, 2% PIK, Due 03/17) |
12,690,507 |
12,412,464 |
12,111,000 |
|||||||||||
Class A Common Units (177,935 units) |
1,999,989 |
54,000 |
||||||||||||||
Class A-1 Common Units (18,818 units) |
137,324 |
137,000 |
||||||||||||||
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 |
61,000 |
||||||||||||||
12,690,507 |
15,387,894 |
12,363,000 |
||||||||||||||
Water Pik, Inc. (7%)* |
Oral Health and Shower Head Supplier |
Second Lien Term Loan (9.8% Cash, Due 01/21) |
33,288,781 |
32,853,497 |
32,853,497 |
|||||||||||
33,288,781 |
32,853,497 |
32,853,497 |
||||||||||||||
Wheel Pros Holdings, Inc. (3%)* |
Wheel/Rim and Performance Tire Distributor |
Subordinated Note (11% Cash, Due 06/20) |
13,822,500 |
13,568,249 |
13,568,249 |
|||||||||||
Class A Units (2,000 units) |
2,000,000 |
1,991,000 |
||||||||||||||
13,822,500 |
15,568,249 |
15,559,249 |
||||||||||||||
Women's Marketing, Inc. (4%)* |
Full-Service Media Organization |
Subordinated Note (11% Cash, 1.5% PIK, Due 06/21) |
16,371,426 |
16,056,408 |
16,056,408 |
|||||||||||
Class A Common Units (16,300 units) |
1,630,000 |
1,630,000 |
||||||||||||||
16,371,426 |
17,686,408 |
17,686,408 |
||||||||||||||
WSO Holdings, LP (0%)* |
Organic/Fair Trade Sugar, Syrup, Nectar and Honey Producer |
Common Points (3,000 points) |
3,000,000 |
1,747,000 |
||||||||||||
3,000,000 |
1,747,000 |
|||||||||||||||
YummyEarth Inc. (4%)* |
Organic Candy Manufacturer |
Senior Note (9.5% Cash, Due 08/20) |
19,500,000 |
18,994,653 |
18,994,653 |
|||||||||||