Trinity Capital Inc. Prices Offering of $100.0 Million of 7.875% Notes due 2029
Trinity Capital Inc. (NASDAQ: TRIN) has priced a public offering of $100.0 million in 7.875% notes due 2029. The notes will mature on September 30, 2029, and can be redeemed after September 30, 2026. Trinity has granted underwriters a 30-day option to purchase up to $15.0 million in additional notes. The offering is expected to close on July 19, 2024, with the notes to be listed on Nasdaq under the symbol 'TRINI'.
Trinity plans to use the net proceeds to pay down existing debt under its KeyBank Credit Facility and potentially redeem a portion of its outstanding 7.00% Notes due 2025. The offering is being managed by several financial institutions, including Keefe, Bruyette & Woods, Morgan Stanley, RBC Capital Markets, and UBS Investment Bank as joint book-running managers.
- Successful pricing of $100.0 million note offering
- Potential for additional $15.0 million through overallotment option
- Plans to use proceeds to pay down existing debt, potentially improving financial structure
- Increase in long-term debt with 7.875% interest rate
- Potential dilution if overallotment option is exercised
Insights
Trinity Capital Inc. is issuing
The interest rate of 7.875% indicates the yield investors demand for investing in Trinity's debt, reflecting their risk assessment. By comparing this rate to the previous 7.00% notes, we see a higher yield, possibly indicating increased risk or a more attractive investment proposition.
For retail investors, it's essential to understand that while this move shows prudent financial management, it also increases Trinity's interest expense in the short term. However, replacing higher-interest debt with slightly lower-interest debt mitigates this. Over time, this should improve the company's financial health and potentially its stock value.
From a market perspective, Trinity's decision to issue these notes and list them on the Nasdaq Global Select Market under the symbol 'TRINI' within 30 days provides additional liquidity and marketability. Listing the notes allows for more accessible trading and could attract a broader investor base.
Furthermore, granting underwriters a 30-day option to purchase an additional
However, it's important for investors to monitor market trends and the company's financial performance closely. While the offering might improve short-term liquidity, the long-term impact will rely heavily on how well Trinity utilizes these proceeds and manages its overall debt strategy.
The offering is subject to customary closing conditions and is expected to close on July 19, 2024. Trinity intends to list the Notes on the Nasdaq Global Select Market within 30 days of the issue date of the Notes under the symbol "TRINI."
Trinity intends to use the net proceeds from this offering to pay down a portion of its existing indebtedness outstanding under its KeyBank Credit Facility and, depending on the remaining amount of net proceeds after such use, to redeem a portion of its outstanding
Keefe, Bruyette & Woods, A Stifel Company, Morgan Stanley, RBC Capital Markets, and UBS Investment Bank are acting as the joint book-running managers for this offering. B. Riley Securities, Oppenheimer & Co., Compass Point and Ladenburg Thalmann are acting as co-managers for this offering.
Investors are advised to carefully consider the investment objectives, risks and charges and expenses of Trinity before investing. The preliminary prospectus supplement dated July 16, 2024 and the accompanying prospectus dated February 7, 2024, each of which has been filed with the Securities and Exchange Commission ("SEC"), contain a description of these matters and other important information about Trinity and should be read carefully before investing.
The issuer has filed a shelf registration statement (including a base prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the base prospectus in that registration statement, the preliminary prospectus supplement and the documents incorporated by reference therein, which the issuer has filed with the SEC, for more complete information about the issuer and this offering. You may obtain these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the preliminary prospectus supplement if you request it from Keefe, Bruyette & Woods, Inc., 787 7th Avenue, 4th Floor,
The information in this preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The preliminary prospectus supplement, the accompanying prospectus and this press release do not constitute an offer to sell or the solicitation of offers to buy, nor will there be any sale of the Notes referred to in this press release, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.
About Trinity Capital Inc.
Trinity (NASDAQ: TRIN, TRINL, TRINZ), an internally managed specialty lending company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended, is a leading provider of debt, including loans and equipment financing, to growth stage companies, including venture-backed companies and companies with institutional equity investors. Trinity's investment objective is to generate current income and, to a lesser extent, capital appreciation through investments consisting primarily of term loans and equipment financings and, to a lesser extent, working capital loans, equity 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.
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 SEC. 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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/trinity-capital-inc-prices-offering-of-100-0-million-of-7-875-notes-due-2029--302198729.html
SOURCE Trinity Capital Inc.
FAQ
What is the interest rate and maturity date of Trinity Capital's (TRIN) new notes offering?
How much did Trinity Capital (TRIN) raise in its recent notes offering?
What will Trinity Capital (TRIN) use the proceeds from its July 2024 notes offering for?
When can Trinity Capital (TRIN) redeem the notes from its July 2024 offering?
