Trinity Capital Inc. Announces Adjustment to Conversion Rate of its 6.00% Convertible Notes due 2025
On March 31, 2023, Trinity Capital Inc. announced an adjustment to the conversion rate of its 6.00% Convertible Notes due 2025, following a cash dividend of $0.47 payable on April 14, 2023. The conversion rate increased to 73.3359 shares of common stock per $1,000 principal amount from 72.3849 shares. This change adjusts the conversion price to $13.64 per share from $13.82. This adjustment is in line with the terms set in the second supplemental indenture, triggered by the dividend exceeding the $0.30 threshold. Trinity aims to distribute 90% to 100% of its taxable income annually.
- Adjustment to conversion rate increases shares received for Convertible Notes, benefiting holders.
- Continued compliance with dividend requirements supports confidence in financial management.
- Dividends may indicate reduced cash reserves affecting future investments.
- Dependence on dividends for conversion adjustments raises concerns over financial stability.
PHOENIX, March 31, 2023 /PRNewswire/ -- Trinity Capital Inc. (Nasdaq: TRIN and TRINL) ("Trinity" or the "Company"), a leading provider of diversified financial solutions to growth stage companies, today announced an adjustment to the conversion rate of its
Effective immediately after the close of business on March 31, 2023, the conversion rate of the Convertible Notes will be adjusted to 73.3359 shares of the Company's common stock per
The adjustment to the conversion rate of the Convertible Notes is being made pursuant to the second supplemental indenture, dated as of December 11, 2020, governing the Convertible Notes as a result of the Company's regular quarterly cash dividend discussed above exceeding the initial dividend threshold of
Notice of the conversion rate adjustment will be delivered to the holders of the Convertible Notes and U.S. Bank National Association, as trustee, in accordance with the terms of the second supplemental indenture governing the Convertible Notes.
Certain Information Regarding Distributions
The Company's objective is to distribute four quarterly distributions in an amount that approximates
Distributions are paid from taxable earnings and may include a return of capital and/or capital gains. The specific tax characteristics of the distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year and in the Company's periodic reports filed with the Securities and Exchange Commission.
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 (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'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 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
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