Triangle Capital Corporation, the Raleigh, NC-based lender and business development company, announced yesterday that it’d be increasing its dividend to 59 cents per share from 54 cents per share, which brings its annualized distribution to shareholders to $2.36 per share.
Executives on Triangle’s earnings call on Aug. 7 said the move is thanks to strong realized capital investment gains in the quarter. Some of that has been driven by successful investments and exits, said chief executive Garland Tucker, while the rest is due to good stock performance. “Since IPO , we have generated over $50 million of realized gains over and above our principal credit losses, including 18.3 million of net realized gains in 2013 and 20.7 million in net realized gains thus far in 2014,” Tucker said.
During the quarter, the firm originated 87.3 million in total investments, of which 61.3 million were new investments and 26 million were follow-on commitments to existing portfolio companies. So far in the third quarter, Triangle has already originated over 58 million in new investments. “Overall, we believe it is a great time to be focused on the lower middle market. It is a segment of the market that we know very well and one which has allowed us to deliver consistent and attractive returns for our shareholders,” Tucker said.
Just in July, the firm did four new deals totaling $58.1 million in a variety of debt and equity funding, according to the firm’s earnings release. The companies involved in the deals were GST AutoLeather, a supplier of interior leather to the auto industry; DLC acquisition, a finance and accounting staffing firm; DPII Holdings, a satellite communications company, and CWS Acquisition Corporation, a manufacturer of custom windows, sliding doors and related products.
Triangle’s profit declined slightly this year: to $14.66 million as of June 30 from $16.27 million at that time last year, or a 9.9 percent decrease.