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PHOENIX - Trinity Capital Inc. (NASDAQ:TRIN), a growth-focused lending company with a market capitalization of $947 million and impressive revenue growth of 31% over the last twelve months, announced Tuesday it has received conditional approval from the U.S. Small Business Administration to submit an application for a Small Business Investment Company license.
The approval, known as a "Green Light" letter, allows Trinity Capital to apply for an SBIC license that would potentially enable the company to access up to $175 million in SBA-guaranteed debentures. According to InvestingPro data, the company currently trades at an attractive P/E ratio of 6.5x while maintaining a substantial 13.9% dividend yield, making it particularly interesting for income-focused investors.
"Trinity Capital is extremely pleased to receive this conditional approval, and we look forward to building on our successful history deploying capital within the SBA program," said Kyle Brown, Chief Executive Officer of Trinity Capital. InvestingPro analysis reveals several more key insights about Trinity Capital’s financial health and market position. Subscribers can access the comprehensive Pro Research Report, part of the platform’s coverage of over 1,400 US stocks.
The company noted that its predecessor entities previously deployed $734 million through two SBIC funds. If granted the license, Trinity Capital plans to use the SBA-guaranteed debentures to supplement its capitalization and expand its private strategies under its Registered Investment Advisor subsidiary.
Trinity Capital emphasized that the conditional approval is only an invitation to submit a full application and does not guarantee final approval for an SBIC license. The company has not received any assurance from the SBA regarding whether a license will be granted or the potential timeframe for approval.
Based in Phoenix, Trinity Capital provides debt solutions to growth-oriented companies and has deployed more than $4.3 billion across over 400 investments since its founding in 2008, according to the press release statement. While the company shows strong profitability metrics, InvestingPro data indicates that short-term obligations exceed liquid assets, an important consideration for potential investors.
In other recent news, Trinity Capital reported its Q1 2025 earnings, which fell short of analysts’ expectations. The company posted an earnings per share (EPS) of $0.43, missing the forecast of $0.52, and reported revenue of $65.4 million, below the expected $67.46 million. In a strategic move, Trinity Capital issued $125 million in 6.750% notes due 2030, with proceeds intended to repay secured indebtedness. Additionally, the company committed $15 million to K2view, an enterprise data management firm, to bolster AI data infrastructure. Trinity Capital also declared a $0.51 dividend for the second quarter of 2025, maintaining its dividend payout for the 22nd consecutive quarter. At its Annual Meeting, the company re-elected directors and ratified Ernst & Young LLP as its independent auditor. Despite the earnings miss, Moody’s assigned Trinity Capital an investment-grade rating, signaling confidence in its financial health.
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