UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 9, 2022
TRINITY CAPITAL INC.
(Exact name of Registrant as Specified in Its Charter)
Maryland |
| 814-01341 |
| 35-2670395 |
(State or Other Jurisdiction |
| (Commission File Number) |
| (IRS Employer |
1 N 1st Street |
| 85004 |
(Address of Principal Executive Offices) |
| (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (480) 374-5350
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
| Trading Symbol(s) |
| Name of each exchange on which registered |
Common Stock, par value $0.001 per share | | TRIN | | Nasdaq Global Select Market |
|
|
Item 2.02. Results of Operations and Financial Condition
On May 9, 2022, Trinity Capital Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2022. Such press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed “filed” for any purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such Section. The information in this Current Report on Form 8-K shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure
On May 9, 2022, the Company disseminated an earnings presentation to be used in connection with its conference call and live webcast to discuss its first quarter 2022 financial results on May 9, 2022, at 5 p.m. Eastern time. A copy of the earnings presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K and incorporated into this Item 7.01 by reference.
The information furnished in this Item 7.01 and Exhibit 99.2 attached hereto is being furnished and shall not be deemed “filed” for any purpose of Section 18 of the Exchange Act, or otherwise subject to the liabilities of such Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit Number |
| Description |
|
|
|
99.1 |
| |
99.2 | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Trinity Capital Inc. | ||
| | ||
May 9, 2022 | By: | /s/ Steven L. Brown | |
| | Name: | Steven L. Brown |
| | Title: | Chief Executive Officer |
Exhibit 99.1
Trinity Capital Inc. Reports First Quarter 2022 Financial Results
PHOENIX, (May 9, 2022 /PRNewswire/) – Trinity Capital Inc. (Nasdaq: TRIN) (“Trinity Capital” or the “Company”), a leading provider of debt and equipment financing to venture capital backed growth stage companies, today announced its financial results for the first quarter ended March 31, 2022.
First Quarter 2022 Highlights
“Following an incredible 2021, the team at Trinity has continued to deliver in 2022, as demonstrated by another quarter of strong results,” said Steven Brown, Chairman and Chief Executive Officer of Trinity Capital. “We’ve continued to execute on our strategic initiatives, growing and diversifying our portfolio, investing in our team and pursuing opportunities to strengthen our balance sheet. In recent quarters, we have been deliberate about building a portfolio and capital structure that can perform even through disruptive economic cycles. Our business remains strong as we continue to innovate, evolve and scale our systems to provide financial solutions that meet the needs of growth-stage businesses.”
“Trinity’s continued momentum reflects our differentiated culture that encourages continuous learning and an entrepreneurial spirit,” said Kyle Brown, President and Chief Investment Officer of Trinity Capital. “As our team and platform continue to grow, we remain committed to executing against our long-term business strategy with the goal of becoming a preeminent lender in the venture space.”
First Quarter 2022 Operating Results
For the three months ended March 31, 2022, total investment income was $31.8 million compared to $17.3 million for the quarter ended March 31, 2021. This represents an effective yield on the average debt investments at cost of 16.3% and 15.5% for the periods ended March 31, 2022 and 2021, respectively. Our effective yield for this quarter was significantly higher as compared to prior quarters as a result of $69.7 million of early loan repayments and a material exit fee earned in the quarter. Effective yields generally include the effects of fees and income accelerations attributed to early loan repayments and other one-time events and may fluctuate quarter-to-quarter depending on the amount of prepayment activity.
Total operating expenses, excluding interest expense, for the first quarter of 2022 were $8.8 million compared to $5.4 million during the first quarter of 2021. The increase was primarily attributable to higher D&O insurance expense, higher compensation associated with additional headcount, variable compensation and amortization of restricted stock grants.
Interest expense for the first quarter of 2022 was $6.8 million compared to $4.6 million during the first quarter of 2021. The increase is primarily attributable to the higher average debt outstanding under our
August 2026 Notes and December 2026 Notes offset by slightly lower debt outstanding under our credit facilities.
Net investment income after taxes was approximately $15.6 million, or $0.57 per share based on 27.4 million basic weighted average shares outstanding for the first quarter of 2022, compared to $7.3 million or $0.31 per share for the first quarter of 2021 based on 23.6 million basic weighted average shares outstanding.
First quarter 2022 net realized gains on investments were approximately $52.6 million compared to net realized gains of $2.6 million during the first quarter of 2021. The significant realized gains were primarily attributable to the sale of our public equity positions in Lucid Group Inc. (Nasdaq: LCID) (“Lucid”) and Matterport Inc. (Nasdaq: MTTR) (“Matterport”).
Net unrealized depreciation was $77.3 million during the first quarter of 2022, compared to net unrealized appreciation of $15.5 million during the first quarter of 2021. The unrealized depreciation was primarily attributable to the reversal of the unrealized appreciation in Lucid and Matterport on the sale of the equity positions.
A provision for income taxes of $0.7 million related to estimated excise tax was recorded in the first quarter of 2022 as compared to $0.1 million in the first quarter of 2021.
First quarter 2022 net decrease in net assets resulting from operations was $9.1 million, or $0.33 per share based on 27.4 million basic weighted average shares outstanding. This compares to a net increase in net assets resulting from operations of $25.3 million or $1.08 per share based on 23.6 million basic weighted average shares outstanding for the first quarter of 2021.
Trinity Capital’s higher weighted average share count for the three-month period ended March 31, 2022, as compared to the prior year is primarily the result of the full impact of shares issued in connection with our IPO, issuance of restricted stock to officers and employees under the 2019 Trinity Capital Inc. Long Term Incentive Plan as well as shares issued under the Company’s dividend reinvestment plan.
As of March 31, 2022, NAV per share decreased to $15.15, compared to $16.40 on December 31, 2021. Total net assets at the end of the first quarter of 2022 decreased by 5.0% to $424.0 million, compared to $446.5 million at the end of Q4 2021. The decrease in total net assets and NAV per share was primarily driven by the reversal of prior period unrealized appreciation on Lucid and Matterport which exceeded the realized gains by approximately $19.1 million and an increase in the number of shares outstanding. The difference between the unrealized appreciation and realized gains was the result of the stock price declines through the dates on which the Company was able to liquidate the shares following the relevant lock-up periods.
Portfolio and Investment Activity
As of March 31, 2022, Trinity Capital’s investment portfolio had an aggregate fair value of approximately $919.3 million and was comprised of approximately $649.5 million in secured loans, $204.3 million in equipment financings and $65.5 million in equity and warrants across 98 portfolio companies.
During the first quarter, the Company originated approximately $305.6 million of total new commitments comprised of secured loans totaling $232.5 million, equipment financing totaling $70.0 million and equity investments totaling $3.1 million. First quarter investments funded totaled approximately $222.5 million, which was comprised of approximately $164.0 million of secured loans, $49.1 million of equipment financings and $9.4 million of warrant and equity investments. The Company continues to shift its portfolio to floating rate loans with approximately 59.6% of its debt portfolio at floating rates as of March 31, 2022.
2
Proceeds received from repayments of the Company's debt investments during the first quarter totaled approximately $96.5 million, which included $69.7 million from early debt repayments and $26.8 million from normal amortization. In addition, the Company received proceeds of $62.3 million from the sale of equity and warrant investments primarily related to four portfolio companies. The investment portfolio increased by $123.2 million on a cost basis, an increase of 15.4%; and by $45.9 million on a fair value basis, an increase of 5.3% as compared to December 31, 2021. The lower increase on a fair value basis was due to the sale of the appreciated positions in Lucid and Matterport.
As of the end of the first quarter, loans to three portfolio companies were on non-accrual status with a total fair value of approximately $4.0 million, or just 0.5% of the Company’s debt investment portfolio at fair value.
The following table shows the distribution of the Company’s loan and equipment financing investments on the 1 to 5 investment risk rating scale at fair value as of March 31, 2022 and December 31, 2021 (dollars in thousands):
| | | | | | | | | | | | | |
|
| |
| March 31, 2022 |
| December 31, 2021 |
| ||||||
Investment Risk Rating | | | | Investments at |
| Percentage of |
| Investments at |
| Percentage of | | ||
Scale Range | | Designation | | Fair Value | | Total Portfolio |
| Fair Value | | Total Portfolio |
| ||
4.0 - 5.0 | | Very Strong Performance | | $ | 80,592 | | 9.4% | | $ | 84,785 |
| 11.5% | |
3.0 - 3.9 | | Strong Performance | |
| 332,019 | | 38.9% | |
| 236,466 |
| 32.1% | |
2.0 - 2.9 | | Performing | |
| 429,044 | | 50.3% | |
| 396,846 |
| 53.9% | |
1.6 - 1.9 | | Watch | |
| 8,858 | | 1.0% | |
| 13,427 |
| 1.9% | |
1.0 - 1.5 | | Default/Workout | |
| 3,286 | | 0.4% | |
| 4,444 |
| 0.6% | |
Total | | | | $ | 853,799 |
| 100.0% | | $ | 735,968 |
| 100.0% | |
As of March 31, 2022, the Company’s loan and equipment financing investments had a weighted average risk rating score of 3.1 as compared to 3.0 as of December 31, 2021.
Secondary Offering
In April 2022, subsequent to quarter-end, the Company closed an underwritten public offering of $50.0 million of shares of its common stock at a public offering price of $18.15 per share. In connection with the offering, the underwriters exercised a 30-day option to purchase up to 413,226 additional shares of its common stock generating an additional $7.5 million.
Liquidity and Capital Resources
As of March 31, 2022, the Company had approximately $94.7 million in available liquidity, including $28.7 million in unrestricted cash and cash equivalents. At the end of the period, the Company had approximately $66.0 million in available borrowing capacity under its credit facility with KeyBank, subject to existing terms and advance rates and regulatory and covenant requirements. Subsequent to the end of the first quarter, the total capacity under the KeyBank Credit Facility was expanded by an additional $100.0 million to a total of $400.0 million and available borrowing capacity was increased to $275.0 million with the addition of MUFG Union Ltd. to the banking syndicate and an increase in availability from KeyBank N.A.
As of March 31, 2022, Trinity Capital's leverage or debt-to-equity ratio was approximately 120% as compared to 104% as of December 31, 2021. The increase in the leverage ratio was primarily attributable to borrowings under the KeyBank Credit Facility.
Distributions
3
On March 17, 2022, the Company’s Board of Directors declared a dividend of $0.40 per share with respect to the quarter ended March 31, 2022, which was paid on April 15, 2022, to shareholders of record as of March 31, 2022. In addition to the regular quarterly dividend, the Company’s Board of Directors declared a new supplemental cash dividend of $0.15 per share in the first quarter, with the intent to declare equal special dividends in the second, third and fourth quarters of 2022 for a total of $0.60 per share in 2022, subject to future Board of Director approval.
Portfolio Company M&A and IPO Activity
As of May 9, 2022, Trinity Capital held debt, equity or warrant investments in two portfolio companies that recently completed their de-SPAC transactions and two additional companies that have entered into definitive agreements to go public via special purpose acquisition companies (“SPACs”).
On November 10, 2021, E la Carte, Inc., (d/b/a Presto, Inc.), announced it had entered into a definitive merger agreement with Ventoux CCM Acquisition Corp. (Nasdaq: VTAQ). Trinity Capital initially committed $10.0 million in debt financing beginning in March 2016 and held warrants for 104,284 shares of common stock, 497,183 shares of preferred Series A stock and 106,841 shares of Preferred Series AA-1 stock as of March 31, 2022.
On December 13, 2021, Footprint International Holding, Inc. announced it had entered into a definitive merger agreement with Gores Holding III (Nasdaq: GIIXU). Trinity Capital initially committed $18.0 million in equipment financing in February 2020 and held $17.8 million in secured loans and a warrant for 115,695 shares of common stock as of March 31, 2022.
On February 2, 2022, Greenlight Biosciences completed its de-SPAC merger with Environmental Impact Acquisition Corp and began trading on the Nasdaq under the ticker symbol “GRNA.” Trinity Capital initially committed $11.3 million in equipment financing beginning in January 2021 and held $8.6 million in equipment financing and 23,017 shares of common stock as of March 31, 2022.
On March 2, 2022, Rigetti & Co., Inc. completed its de-SPAC merger with Supernova Partners Acquisition Company II, Ltd. and began trading on the Nasdaq under the stock symbol “RGTI.” Trinity Capital initially committed $12.0 million in debt financing beginning in April 2021 and held $32.0 million in secured loans, 50,000 shares of common stock and a warrant for 783,132 shares of common stock as of March 31, 2022.
Senior Leadership Appointments
On March 17, 2022, the Company announced that Gerry Harder was promoted to serve as the Company’s first Chief Operating Officer, and Ron Kundich was promoted to Chief Credit Officer, succeeding Mr. Harder in that role. These promotions will expand and deepen the Company’s management team as it continues to execute against its long-term strategic plan.
On April 11, 2022, the Company announced the appointment of Rob Lake as Managing Director, Life Sciences in San Diego, California. Mr. Lake, a veteran in the venture ecosystem, has been supporting venture capital-backed growth stage companies for more than 18+ years.
Conference Call
Trinity Capital will hold a conference call to discuss its first quarter 2022 financial results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on Monday, May 9, 2022.
To listen to the call, please dial (866) 831-8713, or (203) 518-9822 internationally, and reference Conference ID: TRINQ122 if asked, approximately 10 minutes prior to the start of the call.
4
A taped replay will be made available approximately two hours after the conclusion of the call and will remain available for seven days. To access the replay, please dial (800) 938-0997 or (402) 220-1541.
About Trinity Capital Inc.
Trinity Capital (Nasdaq: TRIN), an internally managed specialty lending company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended, is a leading provider of debt, including loans and equipment financing, to growth stage companies, including venture-backed companies and companies with institutional equity investors. Trinity Capital's investment objective is to generate current income and, to a lesser extent, capital appreciation through investments consisting primarily of term loans and equipment financings and, to a lesser extent, working capital loans, equity and equity-related investments. Trinity Capital 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.
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 ("SEC"). The Company 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. More information on risks and other potential factors that could affect the Company's financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein or on the webcast/conference call, is included in the Company's filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recently filed annual report on Form 10-K and subsequent SEC filings.
Contact
Vibhor Garg
Director, Marketing
Trinity Capital, Inc.
vgarg@trincapinvestment.com
5
TRINITY CAPITAL INC.
Consolidated Statements of Assets and Liabilities
(In thousands, except share and per share data)
|
| March 31, |
| December 31, | ||
| | 2022 | | 2021 | ||
|
| (Unaudited) | | | | |
ASSETS |
| |
|
| |
|
Investments at fair value: |
| |
|
| |
|
Control investments (cost of $39,167 and $38,994, respectively) | | $ | 28,057 | | $ | 32,214 |
Affiliate investments (cost of $41,621 and $41,609, respectively) | |
| 28,941 | |
| 32,192 |
Non-control / Non-affiliate investments (cost of $840,264 and $717,253, respectively) | |
| 862,350 | |
| 809,064 |
Total investments (cost of $921,052 and $797,856, respectively) | |
| 919,348 | |
| 873,470 |
Cash and cash equivalents | |
| 28,684 | |
| 31,685 |
Restricted cash | |
| — | |
| 15,057 |
Interest receivable | |
| 6,482 | |
| 5,551 |
Deferred credit facility costs | | | 2,188 | | | 2,308 |
Other assets | |
| 9,237 | |
| 9,047 |
Total assets | | $ | 965,939 | | $ | 937,118 |
| |
|
| |
|
|
LIABILITIES | |
|
| |
|
|
KeyBank Credit Facility | | $ | 134,000 | | $ | 81,000 |
August 2026 Notes, net of $2,535 and $2,679, respectively, of unamortized deferred financing costs | | | 122,465 | | | 122,321 |
2025 Notes, net of $3,319 and $3,616, respectively, of unamortized deferred financing costs | |
| 121,681 | |
| 121,384 |
December 2026 Notes, net of $1,749 and $1,842, respectively, of unamortized deferred financing costs | | | 73,251 | | | 73,158 |
Convertible Notes, net of $2,361 and $2,515, respectively, of unamortized deferred financing costs and discount | | | 47,639 | | | 47,485 |
Credit Suisse Credit Facility | | | — | | | 10,000 |
Distribution payable | | | 15,389 | | | 9,803 |
Security deposits | |
| 11,549 | |
| 10,840 |
Accounts payable, accrued expenses and other liabilities | |
| 15,924 | |
| 14,594 |
Total liabilities | |
| 541,898 | |
| 490,585 |
| |
|
| |
|
|
Commitments and contingencies (Note 6) | |
|
| |
|
|
| |
|
| |
|
|
NET ASSETS | |
|
| |
|
|
Common stock, $0.001 par value per share (200,000,000 authorized, 27,982,842 and 27,229,541 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively) | |
| 28 | |
| 27 |
Paid-in capital in excess of par | |
| 370,570 | |
| 368,609 |
Distributable earnings/(accumulated loss) | |
| 53,443 | |
| 77,897 |
Total net assets | |
| 424,041 | |
| 446,533 |
Total liabilities and net assets | | $ | 965,939 | | $ | 937,118 |
NET ASSET VALUE PER SHARE | | $ | 15.15 | | $ | 16.40 |
6
TRINITY CAPITAL INC.
Consolidated Statements of Operations
(In thousands, except share and per share data)
| | Three Months Ended | | Three Months Ended | | ||
|
| March 31, 2022 |
| March 31, 2021 |
| ||
INVESTMENT INCOME: |
| |
| | |
|
|
Interest income: |
| |
| | |
|
|
Control investments | | $ | 1,373 | | $ | 1,307 | |
Affiliate investments | |
| 428 | |
| 438 | |
Non-Control / Non-Affiliate investments | |
| 26,605 | |
| 14,600 | |
Total interest income | | | 28,406 | | | 16,345 | |
Fee income: | | | | | | | |
Non-Control / Non-Affiliate investments | | | 3,439 | | | 975 | |
Total fee income | | | 3,439 | | | 975 | |
Total investment income | |
| 31,845 | |
| 17,320 | |
| |
|
| |
|
| |
EXPENSES: | |
|
| |
|
| |
Interest expense and other debt financing costs | |
| 6,798 | |
| 4,616 | |
Compensation and benefits | |
| 6,455 | |
| 3,996 | |
Professional fees | | | 832 | | | 647 | |
General and administrative | |
| 1,477 | |
| 750 | |
Total expenses | |
| 15,562 | |
| 10,009 | |
| | | | | | | |
NET INVESTMENT INCOME BEFORE TAXES | | | 16,283 | | | 7,311 | |
| |
|
| |
|
| |
Excise tax expense | | | 674 | | | 58 | |
| |
|
| |
|
| |
NET INVESTMENT INCOME | |
| 15,609 | |
| 7,253 | |
| |
|
| |
|
| |
NET REALIZED GAIN/(LOSS) FROM INVESTMENTS: | |
|
| |
|
| |
Control investments | |
| — | |
| — | |
Affiliate investments | |
| — | |
| — | |
Non-Control / Non-Affiliate investments | |
| 52,644 | |
| 2,595 | |
Net realized gain/(loss) from investments | |
| 52,644 | |
| 2,595 | |
| |
|
| |
|
| |
NET CHANGE IN UNREALIZED APPRECIATION/(DEPRECIATION) FROM INVESTMENTS: | |
|
| |
|
| |
Control investments | |
| (4,331) | |
| (7,554) | |
Affiliate investments | |
| (3,264) | |
| (6,312) | |
Non-Control / Non-Affiliate investments | |
| (69,723) | |
| 29,342 | |
Net change in unrealized appreciation/(depreciation) from investments | |
| (77,318) | |
| 15,476 | |
| | | | | | | |
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | | $ | (9,065) | | $ | 25,324 | |
| |
|
| |
|
| |
NET INVESTMENT INCOME PER SHARE - BASIC | | $ | 0.57 | | $ | 0.31 | |
NET INVESTMENT INCOME PER SHARE - DILUTED(1) | | $ | 0.54 | | | 0.31 | |
| |
|
| |
|
| |
NET CHANGE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE - BASIC & DILUTED | | $ | (0.33) | | $ | 1.08 | |
| |
|
| |
|
| |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC & DILUTED | | | 27,416,943 | | | 23,554,950 | |
7
| A National Leader in Growth Stage Lending First Quarter 2022 Investor Presentation |
| © 2022 Trinity Capital Inc. | 2 Trinity Capital Inc. (the “Company”) cautions that this presentation may contain forward - looking statements that are based on cu rrent expectations and assumptions about future events, and which are not based in historical fact. The forward - looking statements in this presentation are based on curr ent conditions as of the date of this presentation, and include, but are not limited to, statements regarding our financial objectives, beliefs, strategies, antic ipa ted future operating results and cash flows, operating expenses, investment originations and performance, available capital, and payment of future dividends and stockhold er returns. Although our management believes that the expectations reflected in any forward - looking statements are reasonable, actual results could differ materiall y from those expressed or implied in the forward - looking statements. By their nature, these forward - looking statements involve numerous assumptions, uncertainties and ri sks, both general and specific. The risk exists that these statements may not be fulfilled. We caution readers of this presentation not to place undue reliance on the se forward - looking statements, as a number of factors could cause future Company results to differ materially from these statements. Forward - looking statements may be influen ced in particular by factors such as fluctuations in interest rates and stock indices, the effects of competition in the areas in which we operate, and changes in ec onomic, political and regulatory conditions, including as a result of the coronavirus (COVID - 19) pandemic. When relying on forward - looking statements to make decisions, inve stors should carefully consider the aforementioned factors as well as other uncertainties and events. Historical results discussed in this presentation are not i ndi cative of future results. The information disclosed in this presentation is made as of the date hereof and reflects Trinity Capital Inc.’s current asse ssm ent of its financial performance for the most recent period reported. Actual financial results filed with the Securities and Exchange Commission in the future may differ f rom those contained herein in the event of additional adjustments recorded prior to the filing of its financial statements. The information contained in this presentati on should be viewed in conjunction with Trinity Capital Inc.'s most recently filed Quarterly Report on Form 10 - Q, Annual Report on Form 10 - K or Registration Statement on Form 4 24B1. We undertake no obligation to update the information contained herein to reflect subsequently occurring events or circumstances, except as required by appl ica ble securities laws and regulations. This presentation does not constitute a prospectus and should under no circumstances be understood as an offer to sell or the so licitation of an offer to buy our common stock or any other securities nor will there be any sale of the common stock or any other securities referred to in this pres ent ation in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such st ate or jurisdiction. Nothing in these materials should be construed as a recommendation to invest in any securities that may be issued by Trinity Capital Inc. or as legal, accounti ng or tax advice. FORWARD LOOKING STATEMENTS | DISCLAIMER |
| © 2022 Trinity Capital Inc. | 3 Company & Strategic Overview Financial Highlights Portfolio Highlights Venture Capital and Lending Market 4 13 23 30 34 Supplemental Information 36 Analyst Coverage INVESTOR PRESENTATION | AGENDA |
| COMPANY OVERVIEW |
| © 2022 Trinity Capital Inc. | 5 Market Capitalization 14 Year Track Record (4) Annualized Dividend Yield Portfolio (2) $94.7 Million Available Liquidity Liquidity (2) 70 Companies Warrant Positions 22 Companies Equity Positions $32.2 Billion Opportunities $1.91 Billion Fundings 238 Investments 140 Exits 79 Companies Debt Positions Internally Managed - Business Development Company | Nasdaq - TRIN Structure | Ticker BBB Investment Rating (5) Debt to Equity 120% TRINITY CAPITAL OVERVIEW Secured loans and equipment financing to growth stage companies backed by technology banks, venture capital and private equity firms Business (4) Historical information includes information and data related to Trinity Capital's predecessor funds, the first of w hic h was launched in 2008, through March 31, 2022. The predecessor funds were merged with and into Trinity Capital on January 16, 2020, immediately after which Trinity Capital began operating as a business development company. (1) Based on the closing price of TRIN on May 6, 2022. (5) Credit rating assigned by Egan - Jones Ratings Company, an independent, unaffiliated rating agency. A credit rating is n ot a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. There can be no assurance that this rating will remain for any given period - of - time. (2) As of March 31, 2022. $15.15 (2) NAV per Share $512.0 Million (1) Market Cap 11.4% (3) March 31, 2022 (3) Annualized based on the $0.55 dividend (including $0.15 supplemental dividend) declared for Q1 2022 and a closing s toc k price of $19.31 on March 31, 2022 |
| © 2022 Trinity Capital Inc. | 6 We understand the growth stage world and provide more than money to our portfolio company partners Deep Operating Experience ▪ Highly experienced executive team with startup experience ▪ Decades of in - depth high - tech experience ▪ Numerous U.S. and International patents issued One Stop – Loans & Equipment Financing ▪ Providing term loans and equipment financing to growth stage companies ▪ Flexible financing solutions based on the company’s requirement ▪ Financing solutions to a highly fragmented, underserved market Robust & Scalable Platform ▪ Robust and scalable systems for origination, underwriting and monitoring ▪ Separation of origination, underwriting and monitoring duties aides “positive feedback” loop ▪ 46 dedicated professionals with a unique culture built over 14+ years WHY IS TRINITY DIFFERENT |
| © 2022 Trinity Capital Inc. | 7 SEED SEED INVESTMENT PROFITABILITY EARLY GROWTH STAGE LATER TECHNOLOGY PROVEN PRODUCT DEVELOPED SALES DEVELOPMENT & REVENUE REVENUE GROWTH C O M P A N Y V A L U A T I O N COMPANY MILESTONES Trinity Investment Horizon Execution Risk vs. Technology Risk INVESTMENT HORIZON Growth Stage Companies are generally defined as having active equity sponsors, annual revenues up to $100 million and are past technology risk |
| © 2022 Trinity Capital Inc. | 8 Term Loans Axiom Space is developing the world’s first commercial space station .. ▪ I nvestor Syndicate C5 Capital, TQS Advisors, Declaration Partners ▪ Use of Loan General corporate purposes Petal's aim is to bring financial innovation and opportunity to everyone, using modern technology to help people build credit, avoid debt, and spend responsibly. ▪ I nvestor Syndicate Tarsadia Investments, Valar Ventures, CUNA Mutual ▪ Use of Loan Extension of runway Select Examples SENIOR & SUBORDINATED TERM LOANS 01 S ENIOR / SUBORDINATED LOAN Work With The Banks 02 BACKED BY INSTITUTIONAL CAPITAL Companies Have Raised Equity 03 STILL BURNING CASH Companies in Growth Mode and Still Burning Cash |
| © 2022 Trinity Capital Inc. | 9 Equipment Financing Select Examples EQUIPMENT FINANCING 01 COMPANIES WITH CAPEX REQUIREMENTS Manufacturing Equipment and Hard Assets 02 HARDWARE AS A SERVICE Equipment at Customer Location 03 INDUSTRY AGNOSTIC Nature’s Fynd is a food com pa ny cre at ing ver sa tile alterna tive pro teins to nour ish the world’s grow ing pop u la - tion while nur tur ing the plan et. ▪ I nvestor Syndicate SoftBank, Breakthrough Energy Ventures, Blackstone Strategic Partners ▪ Use of Equipment Financing Food production equipment Emerald Cloud Lab is a remote - controlled life science laboratory that allows scientists to conduct their experiments without being anchored to a physical lab. ▪ I nvestor Syndicate Founders Fund , Schooner Capital, Alcazar Capital ▪ Use of Equipment Financing Laboratory Equipment |
| © 2022 Trinity Capital Inc. | 10 Continued investment in our team and platform ▪ We’ve added to the team over the last year ▪ Robust Pipeline activity – 135% increase in opportunities compared to Q1'21 VC ecosystem deal activity and fundraising ▪ Venture Capital funding in Q1 2022 - $71 Billion (1) ▪ In Q1 2022, US VCs closed 199 funds totaling $74 billion (1) Focusing on areas that we think are attractive ▪ Identified certain industries and company profiles that help reduce risk in this environment ▪ Large underserved market to growth stage companies CURRENT MARKET CONDITIONS AND OPPORTUNITIES Attractive Growth Opportunity in the Debt and Equipment Financing Space Source: Pitchbook NVCA Venture Monitor Q1 2022 |
| © 2022 Trinity Capital Inc. | 11 Multiple shared portfolio companies with top Venture Capital Firms We have established inter - creditor agreements with the banks Combining with bank debt results in a lower blended cost to our customers We provide equipment financing and incremental debt capital Relationships with top market share banks catering to majority of VC - backed companies PARTNERSHIP WITH TOP VCs AND TECHNOLOGY BANKS |
| © 2022 Trinity Capital Inc. | 12 Investor Syndicate Revenue & Gross Margins Business Model (1) Includes historical information of Trinity Capital's predecessor funds, the first of which was launched in 2008, through Marc h 3 1, 2022. Past performance is not indicative of future results. Investment results may vary significantly over any given time period. FINANCIALS DEBT STRUCTURE CAPITALIZATION MANAGEMENT PRODUCT & MARKET Product Differentiation Market Potential Industry & Start - up Experience BOD Make - up Fund Vintage & Dry Capital Collateral Cash Life UNDERWRITING APPROACH AND RISK MITIGATION Disciplined investment approach keeps our annualized loss rate at 21 Bps and is more than offset by realized gains on warrant/equity investments (1) |
| FINANCIAL HIGHLIGHTS |
| © 2022 Trinity Capital Inc. | 14 ▪ Total Investment Income of $31.8M ▪ Net Investment Income (“NII”) of $15.6M ▪ Net Interest Margin (“NIM”) of 12.8% ▪ NII per share of $0.57 provides 143% of regular distribution coverage ▪ Increased the first quarter dividend distribution to $0.40 per share, an increase of 11.1% over the dividend declared in the prior quarter ▪ Declared supplemental dividend of $0.15 per share Robust Earnings Leading Originations Platform Portfolio Assets Liquidity Credit Rating ▪ Total Debt Investments (at cost): $864.8M ▪ Total Investments (at cost): $921.1M ▪ Effective Yield: 16.3% ▪ Core yield: 12.9% ▪ Debt & equity commitments in 1Q22 $305.6M ▪ Debt & equity fundings in 1Q22: $222.5M ▪ Net portfolio growth at Cost: $123.2M ▪ Net portfolio growth at FMV: $45.9M ▪ $94.7M available liquidity (subject to existing terms and covenants of the Company’s credit facility) ▪ Debt to Equity 120% ▪ Egan Jones BBB (1) ▪ Stable Outlook Q1 2022 HIGHLIGHTS (1) Credit rating assigned by Egan - Jones Ratings Company, an independent, unaffiliated rating agency. A credit rating is no t a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. There can be no assurance that this rating will remain for any given period of time. |
| © 2022 Trinity Capital Inc. | 15 For the three months ended (In 000’s, except per share amounts) 03/31/2022 12/31/2021 09/30/2021 06/30/2021 3/31/2021 Total Investment Income $31,845 $23,607 $21,790 $19,476 $17,320 Interest expense and other debt financing costs 6,798 6,241 5,112 4,425 4,616 Compensation and benefits 6,455 4,475 3,677 3,370 3,996 General and administrative 2,983 2,315 1,878 1,601 1,455 Total Operating Expenses 16,236 13,031 10,667 9,396 10,067 Net Investment Income (NII) 15,609 10,576 11,123 10,080 7,253 Net Realized Gain / (Loss) from Investments 52,644 7,452 666 1,995 2,595 Net Change in Unrealized Appreciation / (Depreciation) from Investments (77,318) 37,082 15,392 12,630 15,476 Net Increase (Decrease) in Net Assets from Operations $(9,065) $55,110 $27,181 $24,705 $25,324 Net Investment Income (NII) per Share – Basic $0.57 $0.39 $0.42 $0.38 $0.31 Net Increase (Decrease) in Net Assets resulting from Operations per Share – Basic $(0.33) $2.03 $1.02 $0.93 $1.08 Weighted Average Shares Outstanding – Basic 27,417 27,201 26,641 26,479 23,555 QUARTERLY INCOME STATEMENT |
| © 2022 Trinity Capital Inc. | 16 INCOME SOURCE & PORTFOLIO YIELD TRENDS $464 $521 $578 $741 $865 13.7% 13.4% 13.1% 13.2% 12.9% 15.5% 15.9% 15.8% 15.2% 16.3% 10.9% 10.8% 10.8% 10.8% 10.7% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% $200 $300 $400 $500 $600 $700 $800 $900 1Q21 2Q21 3Q21 4Q21 1Q22 PORTFOLIO YIELDS Total Debt Investments (Cost, $ in million) Core Yield (excluding fee income) Effective Yield (including fee income) Weighted Average Coupon Rate Strong Effective Yields Produce Solid Investment Income 64.0% 61.9% 64.6% 69.8% 60.3% 23.8% 21.0% 18.3% 17.5% 19.0% 12.2% 17.1% 17.1% 12.7% 20.7% $- $3,000 $6,000 $9,000 $12,000 $15,000 $18,000 $21,000 $24,000 $27,000 $30,000 $33,000 1Q21 2Q21 3Q21 4Q21 1Q22 SOURCES OF INVESTMENT INCOME IN THOUSANDS Loans - Cash + OID Equipment Financing - Cash + OID Accelarated OID + Fees |
| © 2022 Trinity Capital Inc. | 17 NET INVESTMENT INCOME PER SHARE BRIDGE $0.30 |
| © 2022 Trinity Capital Inc. | 18 (In 000’s, except per share amounts) 03/31/2022 12/31/2021 09/30/2021 06/30/2021 3/31/2021 Assets Total investments at fair value $919,348 $873,470 $677,246 $597,696 $535,741 Cash and cash equivalents 28,684 31,685 25,313 19,124 36,026 Restricted cash - 15,057 15,000 15,341 15,259 Interest receivable 6,482 5,551 4,481 4,065 3,924 Other assets 11,425 11,355 5,367 5,221 3,037 Total Assets $965,939 $937,118 $727,407 $641,447 $593,987 Liabilities Credit facilities $134,000 $91,000 $9,474 $68,947 $43,420 August 2026 Notes, net of unamortized deferred financing cost 122,465 122,321 122,436 - - 2025 Notes, net of unamortized deferred financing cost 121,681 121,384 121,098 120,832 120,594 December 2026 Notes, net of unamortized deferred financing cost 73,251 73,158 - - - Convertible Notes, net of unamortized deferred financing cost and discount 47,639 47,485 47,350 47,214 47,113 Distribution payable 15,389 9,803 8,959 7,682 7,396 Security deposits 11,549 10,840 7,705 8,812 8,605 Accounts payable, accrued expenses, and other liabilities 15,924 14,594 11,379 8,240 5,296 Total Liabilities $541,898 $490,585 $328,401 $261,727 $232,424 Net Assets $424,041 $446,533 $399,006 $379,720 $361,563 Shares outstanding 27,983 27,230 27,148 26,491 26,415 Net Assets per Share (NAV per share) $15.15 $16.40 $14.70 $14.33 $13.69 BALANCE SHEET |
| © 2022 Trinity Capital Inc. | 19 ROBUST NET ASSET VALUE TRIN Trading Price Premium Stock trades at a premium to NAV per Share $361.6 $379.7 $399.0 $446.5 $424.0 $13.69 $14.33 $14.70 $16.40 $15.15 $14.96 $14.48 $16.09 $17.58 $19.31 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $- $100 $200 $300 $400 $500 $600 1Q21 2Q21 3Q21 4Q21 1Q22 NAV ($ millions) NAV per Share TRIN Closing Price |
| © 2022 Trinity Capital Inc. | 20 NET ASSET VALUE (NAV) PER SHARE BRIDGE $19.00 $18.00 $17.00 $16.00 $15.00 $16.40 $15.15 |
| © 2022 Trinity Capital Inc. | 21 Diversified Borrowings ($ in million) at 3/31/2022 Funding Source Debt Commitment Outstanding Principal Undrawn Commitment Stated Maturity Interest Rate Notes: 2025 Unsecured Notes $125 $125 - January 16, 2025 (1) 7.0% Convertible Notes $50 $50 - December 11, 2025 6.0% August 2026 Unsecured Notes $125 $125 - August 24, 2026 4.375% December 2026 Unsecured Notes $75 $75 - December 15, 2026 4.25% Bank Facility: KeyBank Credit Facility $300 (2) $134 $166 October 27, 2026 1 - month LIBOR + 3.25% DEBT CAPITAL STRUCTURE (1) Callable at par in January 2023 (2) As of May 2, 2022, the debt commitments increased to $400 million and interest rate to SOFR |
| © 2022 Trinity Capital Inc. | 22 Distributable Net Income covered regular dividends by 143% in 1Q22 Supplemental Dividend of $0.15 from spillover income Strong Earnings and Dividend Growth SOLID SHAREHOLDER RETURNS $0.49 $0.76 $1.03 $1.31 $1.60 $1.93 $2.29 $2.84 $0.15 $0.22 $0.27 $0.27 $0.28 $0.29 $0.33 $0.36 $0.40 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Dividend Growth Cumulative Dividends Supplemental Dividends Quarterly Dividends |
| PORTFOLIO HIGHLIGHTS |
| (1) Based on Fair Market Value © 2022 Trinity Capital Inc. | 24 Industry Diversification (1) Geography Diversification (1) 23.9% 22.2% 10.0% 7.6% 4.9% 4.3% 4.3% 22.8% Professional, Scientific, and Technical Services Manufacturing Information Healthcare and Social Assistance Real Estate Retail Trade Space Research and Technology Finance and Insurance Industry Diversification (1) Other <= 4.2% individual industry Agriculture, Forestry, Fishing and Hunting Pharmaceutical Educational Services Administrative and Support and Waste Management Rental and Leasing Services Construction Wholesale Trade 46.7% 8.5% 3.9% 7.0% 0.6% 24.1% 7.2% PORTFOLIO DIVERSIFICATION As of March 31, 2022 Utilities Western Europe: 2.0% Transportation and Warehousing Management of Companies and Enterprises |
| © 2022 Trinity Capital Inc. | 25 PORTFOLIO SUMMARY (1) Based on Fair Market Value $551,894 $184,074 $100,732 $36,770 Total Portfolio: By Type At Fair Value as of December 31, 2021 In $000 Secured Loan Equipment Financing Equity Warrant $649,491 $204,308 $22,894 $42,655 Total Portfolio: By Type At Fair Value as of March 31, 2022 In $000 Secured Loan Equipment Financing Equity Warrant March 31, 2022 December 31, 2021 Cost Fair Value Cost Fair Value Type Amount % Amount % Amount % Amount % Secured Loan $660,769 71.7% $649,491 70.6% $557,627 69.8% $551,894 63.2% Equipment Financing 204,054 22.2% 204,308 22.2% 183,298 23.0% 184,074 21.1% Equity 36,176 3.9% 22,894 2.6% 42,046 5.3% 100,732 11.5% Warrants 20,052 2.2% 42,655 4.6% 14,885 1.9% 36,770 4.2% Total $921,051 100.0% $919,348 100.0% $797,856 100.0% $873,470 100.0% |
| © 2022 Trinity Capital Inc. | 26 PORTFOLIO TRENDS (1) Based on outstanding principal (2) Based on Fair Market Value 67.9% 50.7% 40.0% 43.2% 40.4% 32.1% 49.3% 60.0% 56.8% 59.6% 1Q21 2Q21 3Q21 4Q21 1Q22 FIXED VS FLOATING DEBT INVESTMENTS (1) Fixed Floating 62.6% 66.4% 69.2% 63.2% 70.6% 20.2% 16.1% 21.1% 22.2% 9.3% 8.8% 10.6% 11.5% 2.6% 4.2% 4.6% 4.1% 4.2% 4.6% 1Q21 2Q21 3Q21 4Q21 1Q22 TOTAL PORTFOLIO BY INVESTMENT TYPE (2) Loans Equipment Finance Equity Warrant 23.9% Pivoting to floating rate portfolio Strong Asset Diversification |
| © 2022 Trinity Capital Inc. | 27 HYPOTHETICAL WARRANT UPSIDE • Investment of $21.7 million (50%) • Proceeds of $43.5 million (2X) • Cost of $31.8 million • Potential gain of $11.7 million or $0.42 per share • Investment of $21.7 million (50%) • Proceeds of $65.2 million (3X) • Cost of $31.8 million • Potential gain of $33.4 million or $1.20 per share • Investment of $21.7 million (50%) • Proceeds of $86.9 million (4X) • Cost of $31.8 million • Potential gain of $55.2 million or $1.97 per share Recent and Pending Portfolio Company M&A Liquidity Events ▪ Footprint and E la Carte (dba Presto) have entered into definitive merger agreements with Special Purpose Acquisition Companies (SPACs) ▪ Rigetti and Greenlight Bio completed their deSPAC transactions, in February 2022 and March 2022, respectively 119 Warrant Positions in 70 Portfolio Companies ▪ GAAP fair value ~ $42.7 million ▪ GAAP cost ~ $20.1 million ▪ ~ $43.5 million in nominal exercise value Hypothetical Models of Potential Warrant Gains at 3/31/22 ▪ Assume that only 50% of warrants will monetize ▪ Cost of exercised warrants is ~ $31.8 million ▪ Based on 28.0 million shares of common stock outstanding at 3/31/22 MULTIPLE MULTIPLE MULTIPLE 2X 3X 4X For Illustration Purposes Only |
| © 2022 Trinity Capital Inc. | 28 $380 $381 $443 $464 $518 $578 $736 $854 3.2 3.2 3.2 3.2 3.1 3.1 3.0 3.1 1 1.5 2 2.5 3 3.5 $- $100 $200 $300 $400 $500 $600 $700 $800 $900 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Total Debt Investments (FV, $ in million) Weighted Investment Credit Rating Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Very Strong Performance (4.0 – 5.0) $80,592 9.4% $84,785 11.5% $62,872 10.9% $83,915 16.2% $110,278 23.8% Strong Performance (3.0 – 3.9) $332,019 38.9% $236,466 32.1% $224,287 38.8% $204,906 39.5% $164,709 35.4% Performing (2.0 – 2.9) $429,044 50.3% $396,846 53.9% $267,391 46.3% $199,449 38.5% $148,690 32.1% Watch (1.6 – 1.9) $8,858 1.0% $13,427 1.8% $16,194 2.8% $29,820 5.7% $39,194 8.5% Default/Workout (1.0 – 1.5) $3,286 0.4% $4,444 0.6% $6,919 1.2% $343 0.1% $812 0.2% Weighted Average 3.1 3.0 3.1 3.1 3.2 Credit risk rating at Fair Value, Q1 2022 – Q1 2021 ($ in thousands) Consistent and Disciplined Underwriting Standards DISCIPLINED CREDIT RATING |
| © 2022 Trinity Capital Inc. | 29 Select List of Current & Historical Investments DIVERSIFIED PORTFOLIO |
| VENTURE CAPITAL AND LENDING MARKET |
| © 2022 Trinity Capital Inc. | 31 US VC Deal Activity VENTURE CAPITAL MARKET Source: Pitchbook NVCA Venture Monitor Q1 2022 $30 $38 $37 $28 $32 $45 $42 $49 $73 $86 $83 $88 $144 $145 $166 $342 $71 3,402 4,401 4,868 4,587 5,567 6,910 8,029 9,514 10,715 11,356 10,251 11,113 11,652 12,540 12,235 16,554 3,723 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 $- $50 $100 $150 $200 $250 $300 $350 $400 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2022 # of Deals Dollar Invested (billions) VC dollars # of deals |
| © 2022 Trinity Capital Inc. | 32 US VC Fundraising Activity VENTURE CAPITAL FUNDRAISING Source: Pitchbook NVCA Venture Monitor Q1 2022 $34 $30 $18 $17 $25 $23 $22 $38 $43 $51 $44 $72 $70 $85 $132 $74 $- $20 $40 $60 $80 $100 $120 $140 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2022 Billions Capital Raised ($) |
| © 2022 Trinity Capital Inc. | 33 VENTURE DEBT MARKET $4 $8 $8 $11 $17 $15 $15 $25 $32 $33 $34 $6 1,075 1,370 1,656 2,033 2,561 2,434 2,660 2,783 3,177 3,075 3,456 555 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 $- $5 $10 $15 $20 $25 $30 $35 $40 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2022 # of Deals Dollar Invested (billions) Venture Debt # of deals US Venture Debt Deal Activity Source: Pitchbook NVCA Venture Monitor Q1 2022 |
| ANALYST COVERAGE |
| © 2022 Trinity Capital Inc. | 35 Followed by Six Firms Trinity Capital is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Tri nit y Capital’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Trinity Capital or its management. Trinity Capital does not by its reference above or d ist ribution imply its endorsement of or concurrence with such information, conclusions or recommendations. Ryan Lynch (initiated coverage 2/23/21) Finian O’Shea (initiated coverage 2/23/21) Brock Vandervliet (initiated coverage 2/23/21) Casey Alexander (initiated coverage 2/23/21) Christopher Nolan (initiated coverage 2/23/21) EXTENSIVE INDUSTRY ANALYST COVERAGE Mitchell Penn (initiated coverage 5/3/21) |
| SUPPLEMENTAL INFORMATION |
| © 2022 Trinity Capital Inc. | 37 BUSINESS DEVELOPMENT COMPANY (BDC) REGULATED INVESTMENT COMPANY (RIC) Trinity Capital Inc. is an Internally Managed BDC under the 1940 Act and has Elected to be treated as a RIC for Federal Income Tax Purposes beginning with its Taxable Year ending December 31, 2020 ▪ Regulated by the SEC under the Investment Company Act of 1940 (the “1940 Act”) ▪ Leverage limited to approximately 2:1 debt/equity ▪ Investments are required to be carried at fair value ▪ Majority of Board of Directors must be independent ▪ Offer managerial assistance to portfolio companies ▪ Distribute taxable income as dividend distributions to shareholders, subject to approval by Trinity Capital’s Board of Directors ▪ Mandates asset diversification ▪ Eliminates corporate taxation ▪ Allows for the retention of capital gains and/or spillover of taxable income REGULATION & STRUCTURE |
| We look forward to our growing partnership. THANK YOU |
