Triangle Capital Shareholders: Getting A $150 Million Bonus And 12% Dividend Yield?

This article is a follow-up to "Triangle Capital Continues To Suffer From Non-Accruals" on August 3, 2017, discussing Triangle Capital (TCAP) and the potential for additional portfolio credit issues, declining net asset value ("NAV") per share and dividend coverage issues.

Sale of TCAP Management Contract: The Board is pursuing strategic alternatives, including “the potential sale of certain investments, partnering with another organization, as well as other alternatives”. This could include selling the management contract to an external manager.
On November 16, 2017, TCAP announced that it had engaged Houlihan Lokey (HLI) as its financial advisor to assist the Company's board of directors in exploring and evaluating a broad range of strategic alternatives to enhance long-term shareholder value. It is important to note that Houlihan Lokey also served as financial advisor to the Special Committee of FSAM’s Board of Directors for the asset sale of FSC and FSFR to Oaktree Capital (OAK) for $320 million on October 17, 2017.
Under the terms of the agreement, Oaktree paid gross cash consideration of $320 million in cash to Fifth Street Management LLC (“FSM”), an affiliate of FSAM. FSM ceased to be the investment adviser for FSC and FSFR upon the closing of the transaction and FSC and FSFR now trade under the symbols Oaktree Specialty Lending (OCSL) and Oaktree Strategic Income (OCSI).
However, TCAP is internally... Read more

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