Trinity Capital Inc. Adopts Stock Repurchase Program

Rhea-AI Summary

Trinity Capital Inc. (Nasdaq: TRIN) has authorized a stock repurchase program worth $25 million aimed at acquiring its own common stock. The board believes that market pressures have undervalued its shares, presenting an opportunity to enhance shareholder value. While the program is set to run until November 11, 2023, repurchases will occur based on market conditions and are subject to regulatory guidelines. The decision underscores the company's confidence in its stability and future prospects amidst economic uncertainty.

Positive

• Authorization of a $25 million stock buyback boosts shareholder value.
• Repurchase program reflects management's confidence in the company's stability.
• Opportunity to acquire stock perceived as undervalued due to market conditions.

Negative

• None.

PHOENIX, Nov. 14, 2022 /PRNewswire/ -- Trinity Capital Inc. (Nasdaq: TRIN, TRINL) ("Trinity" or the "Company"), a leading provider of diversified financial solutions to growth stage companies, today announced that its board of directors has authorized a program for the purpose of repurchasing up to $25.0 million worth of the Company's common stock. Under the repurchase program, Trinity may, but is not obligated to, repurchase its outstanding common stock in the open market from time to time, provided that Trinity complies with the prohibitions under its Rule 38a-1 Compliance Manual and Rule 17j-1 Code of Ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended, including certain price, market, volume, and timing constraints. Unless amended or extended by Trinity's board of directors, the Company expects the repurchase program to be in place until the earlier of November 11, 2023, or until $25.0 million of Trinity's outstanding shares of common stock have been repurchased.

The Company's board of directors authorized the repurchase program because it believes sustained macroeconomic pressures, inflation concerns, and political uncertainty have caused the Company's common stock to be undervalued from time to time, especially relative to the Company's performance and its peers, and that such repurchases demonstrate the Company's stability and strength, including the resilience and creditworthiness of its portfolio. The timing and number of shares to be repurchased will depend on a number of factors, including market conditions and alternative investment opportunities. In addition, any repurchases will be conducted in accordance with the Investment Company Act of 1940, as amended. The Company has not yet been active in the repurchase program and there are no assurances that it will engage in repurchases, but if market conditions warrant, Trinity now has the ability to take advantage of situations where the Company's management believes share repurchases would be advantageous to the Company and to its shareholders.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties, including the impact of the COVID-19 pandemic on the economy, financial markets, our business, our portfolio companies and our industry. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. Trinity undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

About Trinity Capital Inc.

Trinity Capital Inc. (Nasdaq: TRIN and TRINL), an internally managed business development company, is a leading provider of diversified financial solutions to growth-stage companies with institutional equity investors. Trinity Capital's investment objective is to generate current income and, to a lesser extent, capital appreciation through investments including term loans, equipment financings and equity-related investments. Trinity Capital believes it is one of only a select group of specialty lenders that has the depth of knowledge, experience and track record in lending to growth stage companies. For more information, please visit the Company's website at www.trinitycap.com.

 

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SOURCE Trinity Capital Inc.

FAQ

What is the purpose of Trinity Capital's stock repurchase program?

The program aims to repurchase up to $25 million worth of common stock, enhancing shareholder value amidst perceived undervaluation.

When does the stock repurchase program for TRIN end?

The repurchase program is expected to be in place until November 11, 2023, or until $25 million of shares have been repurchased.

How will Trinity Capital execute its stock buyback?

Repurchases will depend on market conditions and must comply with regulatory guidelines.

What factors influenced Trinity Capital's decision to initiate a buyback?

The board cited macroeconomic pressures, inflation concerns, and political uncertainty as reasons for the perceived undervaluation of its stock.