Triangle Capital Stock Falls As Much As 26 Percent After Third-quarter Report

11/2/17

By Addison Lalier, NC BIZ News

Triangle Capital Corp. saw its stock price fall as much as 26 percent since Wednesday after it reported less than expected third-quarter earnings, a dividend cut and that it was seeking “strategic alternatives.”

Triangle Capital reported net investment income per share of 36 cents per share, while analysts expected earnings of 41 cents per share.

Total investment income decreased to $29.9 million in the third quarter from $31.2 million in the second quarter of 2017.

The Raleigh-based investment company also noted its exploration of new strategic alternatives, including the potential sale of certain investments and the possibility of partnering with another organization. After meeting with several investment banking firms, Triangle Capital expects to announce the formal engagement of an advisor in the near future.

“The third quarter was a challenging quarter for Triangle as we experienced meaningful unrealized depreciation associated with certain assets which previously had been valued below cost,” said CEO E. Ashton Poole in a statement.

“Our origination platform continues to find investment opportunities which are more senior-oriented in nature; however, certain legacy investments, predominantly associated with investment vintages 2014 and 2015, are under-performing from a credit perspective.”

Additionally, the company lowered its quarterly dividend to 30 cents per share, down 15 cents from 45 cents per share in the previous quarter.

The company’s stock fell $2.57, or nearly 21 percent, to $9.68 on Thursday after falling as low as $8.91, which was a 52-week low.

Triangle Capital stock is trading at $9.54 per share, down 14 cents or 1.45 percent, in after-hours trading.

The filing can be found here.

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