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Trinity Capital Inc. Announces Adjustment to Conversion Rate of its 6.00% Convertible Notes due 2025
PHOENIX, June 28, 2024 /PRNewswire/ -- Trinity Capital Inc. (NASDAQ: TRIN) ("Trinity" or the "Company"), a leading provider of diversified financial solutions
About this update from Trinity Capital Inc.
[{"type":"text","content":"PHOENIX, June 28, 2024 /PRNewswire/ -- Trinity Capital Inc. (NASDAQ: TRIN) (\"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 6.00% Convertible Notes due 2025 (the \"Convertible Notes\") as a result of the Company's cash dividend of $0.51 per share, payable on July 15, 2024 to stockholders of record as of June 28, 2024. The ex-dividend date for such dividend was June 28, 2024.\n\n \n \n \n \n \n \n\n \nEffective immediately after the close of business on June 28, 2024, the conversion rate of the Convertible Notes will be adjusted to 79.2226 shares of the Company's common stock per $1,000 principal amount of Convertible Notes from the prior conversion rate of 78.0543 shares of the Company's common stock per $1,000 principal amount of Convertible Notes, which had been in effect since April 1, 2024. As a result, effective as of such time, the conversion price applicable to the Convertible Notes will be adjusted to $12.62 per share of common stock from $12.81 per share of common stock.\nThe 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 $0.30 per share of common stock set forth in the second supplemental indenture and the Company paying a supplemental cash dividend.\nNotice of the conversion rate adjustment will be delivered to the holders of the Convertible Notes and U.S. Bank Trust Company, National Association, as trustee, in accordance with the terms of the second supplemental indenture governing the Convertible Notes.\nCertain Information Regarding DistributionsThe Company's objective is to distribute four quarterly distributions in an amount that approximates 90% to 100% of its taxable quarterly income or potential annual income for a particular year in order to qualify for tax treatment as a regulated investment company under the Internal Revenue Code of 1986. In addition, during any particular year, the Company may pay additional supplemental distributions, so that the Company distributes approximately all its annual taxable income in the year it was ...