Trinity Capital issues $125 million in 6.750% notes due 2030

Trinity Capital Inc . (NASDAQ:TRIN), a specialty lending company with a market capitalization of $922 million and impressive revenue growth of 31% over the last twelve months, announced Thursday it has entered into a definitive agreement with U.S. Bank Trust Company, National Association, to issue $125 million in aggregate principal amount of 6.750% notes due 2030. The transaction closed Thursday, according to a statement based on a filing with the Securities and Exchange Commission. According to InvestingPro data, Trinity maintains a healthy P/E ratio of 6.3, suggesting potential value for investors.

The notes will mature on July 3, 2030. Trinity Capital may redeem the notes, in whole or in part, at its option at any time prior to June 3, 2030, at par value plus a make-whole premium as defined in the indenture. On or after June 3, 2030, the notes may be redeemed at par. Interest on the notes will be paid semi-annually on January 3 and July 3 of each year, beginning January 3, 2026. InvestingPro analysis reveals that Trinity’s current ratio stands at 0.49, indicating the importance of this new financing for the company’s liquidity position.

The notes are unsecured and unsubordinated obligations of Trinity Capital and rank senior to any of the company’s subordinated debt, equal with other unsecured unsubordinated debt, and junior to secured debt to the extent of the assets securing such obligations. The notes are also structurally junior to obligations incurred by the company’s subsidiaries and other financing vehicles.

The indenture includes covenants requiring Trinity Capital to comply with asset coverage requirements under the Investment Company Act of 1940 and to provide certain financial information to noteholders and the trustee if the company is not subject to reporting requirements under the Securities Exchange Act of 1934. The indenture also requires the company to make an offer to repurchase the notes at 100% of principal plus accrued and unpaid interest in the event of a defined change of control repurchase event.

The notes were offered and sold under a registration statement previously filed with the SEC. Net proceeds to Trinity Capital were approximately $121.23 million after underwriting discounts and estimated offering expenses. The company intends to use the proceeds to repay outstanding secured indebtedness under its credit agreement with KeyBank, National Association.

Trinity Capital’s common stock and its 7.875% notes due 2029 trade on the Nasdaq Global Select Market under the symbols TRIN, TRINZ, and TRINI, respectively.

In other recent news, Trinity Capital Inc. reported its Q1 2025 earnings, revealing a miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.43, falling short of the expected $0.52, and revenue of $65.4 million, below the forecasted $67.46 million. Despite the earnings miss, Trinity Capital demonstrated a 30% year-over-year growth in total investment income, reaching $65 million. In another development, Trinity Capital announced a $15 million growth capital commitment to K2view, aimed at accelerating innovation in AI data infrastructure. Additionally, Trinity Capital declared a $0.51 dividend per share for the second quarter of 2025, maintaining the same amount as the previous quarter. The company also held its Annual Meeting, where stockholders re-elected two directors and ratified Ernst & Young LLP as the independent auditor for 2025. Trinity Capital received a Moody’s investment-grade rating, reflecting strong performance and business diversification. These developments highlight Trinity Capital’s ongoing efforts to maintain growth and stability amid market uncertainties.

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