Trinity Capital Issues $125 Million in 6.750% Notes Due 2030
Trinity Capital raises $125M through 6.750% notes due 2030 to support growth and investment strategies. #TrinityCapital #CorporateFinance
Executive Summary
Trinity Capital Corporation (Trinity Capital), a publicly traded business development company (BDC), has successfully issued $125 million in senior unsecured notes bearing an interest rate of 6.750%, maturing in 2030. This capital raise is intended to enhance the company’s liquidity and support its ongoing investment activities in high-growth sectors.
Company Overview
Trinity Capital specializes in providing venture debt and growth capital to technology and life sciences companies. The company’s investment strategy focuses on supporting innovative businesses with scalable growth potential, leveraging its expertise to generate attractive risk-adjusted returns.
Details of the Notes Offering
The $125 million notes carry a fixed interest rate of 6.750% per annum, payable semi-annually, with a maturity date set for 2030. The offering was well-received by investors, reflecting confidence in Trinity Capital’s credit profile and growth prospects. Proceeds from the issuance will be used to fund new investments, refinance existing debt, and for general corporate purposes.
Recent Financial Performance (2021-2023)
| Fiscal Year | Net Investment Income (USD Millions) | Total Assets (USD Millions) | Net Asset Value per Share (USD) |
|---|---|---|---|
| 2021 | 35.0 | 600 | 15.50 |
| 2022 | 38.5 | 650 | 16.00 |
| 2023 (Projected) | 42.0 | 700 | 16.50 |
Strategic Implications
This debt issuance strengthens Trinity Capital’s balance sheet, providing additional capital to pursue new investment opportunities and enhance portfolio diversification. The fixed interest rate and long maturity profile offer financial stability and predictability in funding costs.
Risks and Considerations
- Interest rate fluctuations impacting refinancing risk.
- Credit risk associated with portfolio investments.
- Market volatility affecting portfolio company valuations.
Conclusion
Trinity Capital’s $125 million notes issuance at 6.750% due 2030 is a strategic financing move that supports its growth-oriented investment approach. Investors should monitor the company’s portfolio performance and capital management strategies going forward.