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.
Effective 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.
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 Trust Company,
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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/trinity-capital-inc-announces-adjustment-to-conversion-rate-of-its-6-00-convertible-notes-due-2025--302185924.html
SOURCE Trinity Capital Inc.