PHOENIX, Dec. 29,
2023 /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 $0.50 per share, payable on January 12, 2024 to stockholders of record as of
December 29, 2023. The ex-dividend
date for such dividend was December 28,
2023.
Effective immediately after the close of business on
December 29, 2023, the conversion
rate of the Convertible Notes will be adjusted to 76.9453 shares of
the Company's common stock per $1,000
principal amount of Convertible Notes from the prior conversion
rate of 75.9145 shares of the Company's common stock per
$1,000 principal amount of
Convertible Notes, which had been in effect since October 1, 2023. As a result, effective as of
such time, the conversion price applicable to the Convertible Notes
will be adjusted to $13.00 per share
of common stock from $13.17 per share
of common stock.
The 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.
Notice of the conversion rate adjustment will be delivered to
the holders of the Convertible Notes and U.S. Bank National
Association, as trustee, in accordance with the terms of the second
supplemental indenture governing the Convertible Notes.
Certain Information Regarding Distributions
The 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 earned, or it may spill over the excess taxable income into
the coming year for future distribution payments.
Distributions are paid from taxable earnings and may include a
return of capital and/or capital gains. The specific tax
characteristics of the distributions will be reported to
stockholders on Form 1099-DIV after the end of the calendar year
and in the Company's periodic reports filed with the Securities and
Exchange Commission.
Forward-Looking Statements
This press release may contain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Statements other than statements of historical facts
included in this press release may constitute forward-looking
statements and are not guarantees of future performance or results
and involve a number of risks and uncertainties, including the
impact of the COVID-19 pandemic on the economy, financial markets,
our business, our portfolio companies and our industry. Actual
results may differ materially from those in the forward-looking
statements as a result of a number of factors, including those
described from time to time in filings with the Securities and
Exchange Commission. Trinity undertakes no duty to update any
forward-looking statement made herein. All forward-looking
statements speak only as of the date of this press release.
About Trinity Capital Inc.
Trinity (Nasdaq: TRIN), an internally managed business
development company, is a leading provider of diversified financial
solutions to growth stage companies with institutional equity
investors. Trinity's investment objective is to generate current
income and, to a lesser extent, capital appreciation through
investments, including term loans, equipment financings and
equity-related investments. Trinity believes it is one of only a
select group of specialty lenders that has the depth of knowledge,
experience, and track record in lending to growth stage companies.
For more information, please visit the Company's website at
www.trinitycap.com.
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SOURCE Trinity Capital Inc.