Trinity Capital Inc. Expands its Credit Facility with KeyBank

Rhea-AI Summary

Trinity Capital Inc. (Nasdaq: TRIN) has expanded its credit facility led by KeyBank N.A. from $350 million to $440 million, with an accordion feature allowing potential growth to $690 million. The amendment extends the maturity date to July 27, 2029, and increases the lender group to 11 banks. The facility now offers variable advance rates of up to 62% on eligible first-lien loans and 42% on second-lien loans.

CEO Kyle Brown highlighted that this expansion will support business growth and capitalize on market opportunities. CFO Michael Testa noted that the expanded facility, combined with recent 7.875% investment grade notes totaling $115.0 million and access to capital through their ATM program, enhances Trinity's liquidity position and strengthens their balance sheet for portfolio growth.

Positive

• Credit facility expanded from $350 million to $440 million
• Potential to increase facility size to $690 million through accordion feature
• Maturity date extended to July 27, 2029
• Increased variable advance rates up to 62% on first-lien loans and 42% on second-lien loans
• Diversified lender group expanded to 11 banks
• Recent 5-year 7.875% investment grade notes raised $115.0 million

Negative

• None.

Insights

Financial Analyst

Trinity Capital's credit facility expansion is a positive development for the company's growth prospects. The increase from $350 million to $440 million in commitments, with potential growth to $690 million, significantly enhances Trinity's lending capacity. This expanded facility, coupled with the $115 million raised from recent note issuance, strengthens Trinity's balance sheet and liquidity position.

The extended maturity to 2029 and improved borrowing terms (up to 62% on first-lien loans and 42% on second-lien loans) provide Trinity with greater financial flexibility. This enhanced capacity could translate into increased revenue and portfolio growth, potentially boosting shareholder value. However, investors should monitor how effectively Trinity deploys this capital and manages associated risks in the growth-stage lending market.

Market Research Analyst

The expansion of Trinity Capital's credit facility reflects growing confidence in the growth-stage lending market. With 11 banks now involved, there's broader institutional support for this sector. This could signal positive market dynamics for companies providing financial solutions to growth-stage firms.

Trinity's ability to secure more favorable terms and expand its lender base suggests a strong market position. The variable advance rates of up to 62% on first-lien loans and 42% on second-lien loans are competitive, potentially allowing Trinity to offer more attractive terms to its clients. This could lead to increased market share and deal flow. Investors should watch for Trinity's portfolio growth and quality in coming quarters as indicators of market demand and the company's execution capabilities.

Credit facility can accordion to $690 million

Maturity Date Extended to July 2029

PHOENIX, Aug. 5, 2024 /PRNewswire/ -- Trinity Capital Inc. (Nasdaq: TRIN) ("Trinity Capital," "Trinity" or the "Company"), a leading provider of diversified financial solutions to growth-stage companies, today announced that it has amended its credit facility led by KeyBank N.A. ("KeyBank"). The amendment expands the original credit facility from $350 million to $440 million in commitments and includes an accordion feature, pursuant to which the Company may increase the size of the credit facility to an aggregate principal amount of $690 million. The expansion increases the diversified group of lenders to 11 banks.

The amendment extends the maturity date of the facility to July 27, 2029 and broadens Trinity's borrowing capacity by providing a variable advance rate of up to 62% on eligible first-lien loans (including equipment finance loans) and up to 42% on eligible second-lien loans.

"The expansion of our credit facility will further support the growth of our business and allow us to take advantage of our current and future market opportunities," said Kyle Brown, Chief Executive Officer of Trinity Capital. "We are very pleased that we were able to continue to diversify our lender group and significantly expand the commitments under our credit facility. We welcome the new partners and thank our existing banks for their continued confidence in the Trinity platform."

"Proceeds from our recent 5-year 7.875% investment grade notes totaling $115.0 million, including the fully executed overallotment, combined with our access to capital through our accretive ATM program, and now our expanded credit facility with KeyBank, enhance our liquidity position and strengthen our balance sheet, allowing us to further execute on our business strategy and pursue the growth of our investment portfolio," said Michael Testa, Chief Financial Officer of Trinity Capital.

About Trinity Capital Inc.

Trinity (Nasdaq: TRIN), 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.

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. 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. The Company 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.

Contact
Ben Malcolmson
Head of Investor Relations
Trinity Capital Inc.
ir@trincapinvestment.com

View original content:https://www.prnewswire.com/news-releases/trinity-capital-inc-expands-its-credit-facility-with-keybank-302213916.html

SOURCE Trinity Capital Inc.

FAQ

What is the new size of Trinity Capital's (TRIN) credit facility with KeyBank?

Trinity Capital (TRIN) has expanded its credit facility with KeyBank from $350 million to $440 million, with an accordion feature allowing potential growth to $690 million.

When is the new maturity date for Trinity Capital's (TRIN) credit facility?

The maturity date for Trinity Capital's (TRIN) credit facility has been extended to July 27, 2029.

What are the new advance rates for Trinity Capital's (TRIN) credit facility?

Trinity Capital's (TRIN) credit facility now offers variable advance rates of up to 62% on eligible first-lien loans and up to 42% on eligible second-lien loans.

How much did Trinity Capital (TRIN) raise through its recent investment grade notes?

Trinity Capital (TRIN) raised $115.0 million through its recent 5-year 7.875% investment grade notes, including the fully executed overallotment.