Trinity Capital Inc. (NASDAQ: TRIN) recently announced that the company has entered into an open market sale agreement with B. Riley Securities, Inc. The agreement allows Trinity Capital to issue and sell up to $100,000,000 aggregate principal amount of 7.875% Notes due 2029, including both the March 2029 Notes and September 2029 Notes through the Sales Agent or to the Sale Agent. The company clarifies that there is no obligation to issue these notes under this agreement.
The primary objective of this offering is to utilize the net proceeds generated to pay down a portion of the existing indebtedness under a credit arrangement with KeyBank National Association, as well as to make investments in accordance with the company’s investment objective, investment strategy, and for general corporate purposes. Trinity Capital’s borrowing capacity, through its wholly owned subsidiary TrinCap Funding, LLC, is up to $690.0 million under the Credit Agreement, which currently has about $290.0 million outstanding as of September 30, 2024.
These Notes will rank equally in right of payment with all of Trinity Capital’s other future and outstanding unsecured, unsubordinated indebtedness. However, it is important to note that the Notes will rank junior to any secured indebtedness of the company. The covenants in the Indenture include provisions ensuring compliance with specific regulations and providing financial information to holders of the Notes and the Trustee.
Sales of these Notes will be conducted under the guidance of the Sales Agreement, with the Sales Agent potentially receiving a commission of up to 2.00% on the gross proceeds of the Notes sold. Further details regarding the offering and the Sales Agreement are available in the Prospectus Supplement dated February 10, 2025.
It’s essential to point out that this announcement does not act as an offer to sell or a solicitation to buy securities, nor does it imply any sale in a jurisdiction where unlawful before registration or qualification under relevant securities laws. The company’s latest developments are in line with its strategic financial initiatives.
The full text of all agreements and supplemental indentures mentioned is available for reference in the official SEC filing.
This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. Investors are advised to consider these risks and uncertainties carefully.
Investors and stakeholders eagerly await further developments related to Trinity Capital Inc.’s financial undertakings.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Trinity Capital’s 8K filing here.
Trinity Capital Company Profile
Trinity Capital Inc is a business development company. It is a venture capital firm specializing in venture debt to growth stage companies looking for loans and/or equipment financing. Trinity Capital Inc was founded in 2019 is based in Phoenix, Arizona with additional offices in the United States.
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