Business
Trinity Capital Inc. Enters into New $300 Million Credit Facility with KeyBank
Enhances financial flexibility and diversifies capital resources following its recently completed offering of $125 million of 4.375% Notes Due 2026 PHOENIX,
About this update from Trinity Capital Inc.
[{"type":"text","content":"Enhances financial flexibility and diversifies capital resources following its recently completed offering of $125 million of 4.375% Notes Due 2026\n\n\nPHOENIX, Nov. 1, 2021 /PRNewswire/ -- Trinity Capital Inc. (Nasdaq: TRIN) (\"Trinity\"), a leading specialty lending company that provides debt, including loans and equipment financing, to growth stage companies backed by technology banks, venture capital and private equity firms, today announced that it has entered into a new $300 million credit facility led by KeyBank N.A. (\"Key Bank\"). KeyBank is leading the credit facility with a commitment of $75 million, and the facility can accordion to $300 million as additional lenders are added to the lending syndicate, subject to the facility's credit agreement.\n\n \n \n \n \n \n \n\n \nThe credit facility has a term of five years, comprised of a three-year revolving period and a two-year amortization period. Borrowings under the facility will bear interest at a rate equal to the one-month London Interbank Offered Rate (\"LIBOR\") plus 3.25%, with the ability to scale down to one-month LIBOR plus 2.85% based on certain factors, including the number and composition of the loans in the collateral pool. The credit facility features variable advance rates of up to 60% on eligible loans and up to 64% on eligible equipment finance loans. In addition to KeyBank serving as administrative agent and syndication agent, Wells Fargo Bank N.A. will serve as collateral custodian and paying agent. \nThe announcement of the new KeyBank credit facility comes as Trinity continues to diversify its capital structure and enhance financial flexibility to support continued portfolio growth. In addition to the KeyBank credit facility, Trinity recently completed a public offering of $125 million in aggregate principal amount of 4.375% Notes due 2026.\nDavid Lund, Chief Financial Officer of Trinity, said: \"Together, this new credit facility and the oversubscribed bond offering serve as proactive steps towards continuing to strengthen Trinity's balance sheet, improving our long-term financial liquidity and lowering our overall cost of capital. Teaming with KeyBank will allow us to continue growing our investment portfolio while driving returns for our stakeholders with a partner who demonstrates an understanding of the opportunity of lending to venture backe...