Trinity Capital Inc. (“Trinity” or the “Company”), a leading specialty lending company that provides debt and equipment lease financing to growth stage companies backed by technology banks, venture capital and private equity firms, today announced that on March 16, 2020 the Company’s registration statement on Form 10 became automatically effective with the U.S. Securities and Exchange Commission (“SEC”) . As a result, Trinity is a public reporting company and subject to applicable reporting requirements of the Securities Exchange Act of 1934, as amended.
“In light of the unprecedented times in which we are now living, we understand the concern and uncertainty that our investors may be experiencing related to the impact of COVID-19. The impact of COVID-19 has created significant volatility and fear here in the US and abroad. The team at Trinity is executing contingency plans to deal with the disruption caused by this event. Trinity is working daily and totally focused on credit quality as well as short and long-term cash and investment planning in order to achieve success given multiple potential outcomes.” said Steve Brown, Chairman and CEO of Trinity.
The following are specific action steps in progress:
Business Continuity
From a health and safety perspective, we have implemented corporate policies in line with guidelines from the CDC and local authorities for our various office locations. We have indefinitely postponed non-essential travel and implemented a policy of working remotely to reduce social contact. We recognize that the outbreak of this disease is continually evolving and will adjust our continuity plans to maintain an effective and efficient operational environment.
Proactively Monitoring our Portfolio and New Investments
We have been actively engaged in assessing all of our portfolio companies and the impact that both COVID-19 and a potential economic downturn may have on their respective businesses. As this is a very fluid situation, the full impact on our portfolio will only be determined as the financial market uncertainties work their way through and the resulting economic impact is determined. Our primary focus right now is portfolio credit strength and quality. This will continue to dominate our efforts as we make our way through this unprecedented time.
“Trinity will continue to selectively look at new opportunities with the same stringent underwriting criteria we’ve always applied, adding a new layer of scrutiny tied to the impact of COVID-19 and the negative economic impacts currently playing out. Growth in our portfolio right now is secondary to maintaining both current credit quality and company-wide liquidity through this crisis. That said, consistent with our investment objective, we will continue to provide loans and equipment lease financings to growth stage companies who are in need of a non-dilutive extension of runway. We seek to compliment the equity these companies have raised to provide the necessary capital to achieve defined milestones and build their valuations heading towards a fundraise or liquidity event. We are active and looking for new opportunities.” said Kyle Brown, President of Trinity.
Liquidity
We understand that in these times liquidity is key to financial success. To that end we believe we have positioned Trinity to have both cash on-hand as well as capital resources through our credit facility for operations, support of our portfolio companies and continued strategic investing.
“We will continue to work through and monitor the unfolding situation and share important updates as they occur. If you have questions or concerns, please do not hesitate to contact me or any member of our executive team.” concluded Steve Brown.
About Trinity Capital Inc.
Trinity, an internally managed specialty lending company that has elected to be regulated as a BDC under the Investment Company Act of 1940, is a leading provider of debt and equipment lease financing to growth stage companies, including venture-backed companies and companies with institutional equity investors. Trinity’s investment objective is to generate current income and, to a lesser extent, capital appreciation through investments consisting primarily of term debt and equipment lease financings and, to a lesser extent, working capital loans, equity 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 https://trincapinvestment.com/.
Forward-Looking Statements
Certain information contained herein may constitute “forward-looking statements” that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about Trinity, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond Trinity’s control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in Trinity’s filings with the Securities and Exchange Commission. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which Trinity makes them. Trinity does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
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