Trinity Capital Inc. Studies First Quarter 2022 Monetary Outcomes

PHOENIX, Might 9, 2022 /PRNewswire/ — Trinity Capital Inc. (Nasdaq: TRIN) (“Trinity Capital” or the “Firm”), a number one supplier of debt and tools financing to enterprise capital backed development stage corporations, at present introduced its monetary outcomes for the primary quarter ended March 31, 2022.

First Quarter 2022 Highlights

• Complete funding earnings of $31.Eight million, a rise of 83.8% year-over-year
• Web funding earnings (“NII”) of $15.6 million, or $0.57 per primary share, a rise of 115.2% year-over-year
• Web realized beneficial properties of $52.6 million on the sale of fairness and different investments
• Mixture debt and fairness funding commitments of $305.6 million
• Complete gross investments funded of $222.5 million, comprised of $103.9 million throughout 10 new portfolio corporations and $118.6 million throughout 21 present portfolio corporations
• Debt principal repayments of $96.5 million
• Funding portfolio of $919.Three million at truthful worth, a rise of 5.3% from December 31, 2021  
• Web asset worth (“NAV”) per share decreased to $15.15 from $16.40 on December 31, 2021
• Undistributed earnings spillover of $73.2 million, or $2.62 per ending shares excellent
• Declared a dividend distribution of $0.40 per share for the primary quarter, a rise of 11.1% from This autumn 2021, and a brand new supplemental money dividend of $0.15 per share with the intent to declare equal supplemental dividends within the subsequent quarters of 2022

“Following an unbelievable 2021, the group at Trinity has continued to ship in 2022, as demonstrated by one other quarter of sturdy outcomes,” mentioned Steven Brown, Chairman and Chief Government Officer of Trinity Capital. “We have continued to execute on our strategic initiatives, rising and diversifying our portfolio, investing in our group and pursuing alternatives to strengthen our steadiness sheet. In latest quarters, we have now been deliberate about constructing a portfolio and capital construction that may carry out even by means of disruptive financial cycles. Our enterprise stays sturdy as we proceed to innovate, evolve and scale our techniques to supply monetary options that meet the wants of growth-stage companies.” 

“Trinity’s continued momentum displays our differentiated tradition that encourages steady studying and an entrepreneurial spirit,” mentioned Kyle Brown, President and Chief Funding Officer of Trinity Capital. “As our group and platform proceed to develop, we stay dedicated to executing towards our long-term enterprise technique with the purpose of changing into a preeminent lender within the enterprise area.”

First Quarter 2022 Working Outcomes

For the three months ended March 31, 2022, whole funding earnings was $31.Eight million in comparison with $17.Three million for the quarter ended March 31, 2021. This represents an efficient yield on the common debt investments at value of 16.3% and 15.5% for the intervals ended March 31, 2022 and 2021, respectively. Our efficient yield for this quarter was considerably increased as in comparison with prior quarters because of $69.7 million of early mortgage repayments and a cloth exit charge earned within the quarter. Efficient yields usually embody the consequences of charges and earnings accelerations attributed to early mortgage repayments and different one-time occasions and will fluctuate quarter-to-quarter relying on the quantity of prepayment exercise.  

Complete working bills, excluding curiosity expense, for the primary quarter of 2022 have been $8.Eight million in comparison with $5.Four million in the course of the first quarter of 2021. The rise was primarily attributable to increased D&O insurance coverage expense, increased compensation related to further headcount, variable compensation and amortization of restricted inventory grants. 

Curiosity expense for the primary quarter of 2022 was $6.Eight million in comparison with $4.6 million in the course of the first quarter of 2021. The rise is primarily attributable to the upper common debt excellent below our August 2026 Notes and December 2026 Notes offset by barely decrease debt excellent below our credit score amenities.  

Web funding earnings after taxes was roughly $15.6 million, or $0.57 per share primarily based on 27.Four million primary weighted common shares excellent for the primary quarter of 2022, in comparison with $7.Three million or $0.31 per share for the primary quarter of 2021 primarily based on 23.6 million primary weighted common shares excellent.

First quarter 2022 internet realized beneficial properties on investments have been roughly $52.6 million in comparison with internet realized beneficial properties of $2.6 million in the course of the first quarter of 2021. The numerous realized beneficial properties have been primarily attributable to the sale of our public fairness positions in Lucid Group Inc. (Nasdaq: LCID) (“Lucid”) and Matterport Inc. (Nasdaq: MTTR) (“Matterport”).

Web unrealized depreciation was $77.Three million in the course of the first quarter of 2022, in comparison with internet unrealized appreciation of $15.5 million in the course of 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 fairness positions.  

A provision for earnings taxes of $0.7 million associated to estimated excise tax was recorded within the first quarter of 2022 as in comparison with $0.1 million within the first quarter of 2021.  

First quarter 2022 internet lower in internet property ensuing from operations was $9.1 million, or $0.33 per share primarily based on 27.Four million primary weighted common shares excellent. This compares to a internet improve in internet property ensuing from operations of $25.Three million or $1.08 per share primarily based on 23.6 million primary weighted common shares excellent for the primary quarter of 2021.

Trinity Capital’s increased weighted common share depend for the three-month interval ended March 31, 2022, as in comparison with the prior yr is primarily the results of the total impression of shares issued in reference to our IPO, issuance of restricted inventory to officers and staff below the 2019 Trinity Capital Inc. Lengthy Time period Incentive Plan in addition to shares issued below the Firm’s dividend reinvestment plan.

Web Asset Worth 

As of March 31, 2022, NAV per share decreased to $15.15, in comparison with $16.40 on December 31, 2021. Complete internet property on the finish of the primary quarter of 2022 decreased by 5.0% to $424.Zero million, in comparison with $446.5 million on the finish of This autumn 2021. The lower in whole internet property and NAV per share was primarily pushed by the reversal of prior interval unrealized appreciation on Lucid and Matterport which exceeded the realized beneficial properties by roughly $19.1 million and a rise within the variety of shares excellent. The distinction between the unrealized appreciation and realized beneficial properties was the results of the inventory worth declines by means of the dates on which the Firm was capable of liquidate the shares following the related lock-up intervals.

Portfolio and Funding Exercise

As of March 31, 2022, Trinity Capital’s funding portfolio had an mixture truthful worth of roughly $919.Three million and was comprised of roughly $649.5 million in secured loans, $204.Three million in tools financings and $65.5 million in fairness and warrants throughout 98 portfolio corporations.

In the course of the first quarter, the Firm originated roughly $305.6 million of whole new commitments comprised of secured loans totaling $232.5 million, tools financing totaling $70.Zero million and fairness investments totaling $3.1 million. First quarter investments funded totaled roughly $222.5 million, which was comprised of roughly $164.0 million of secured loans, $49.1 million of apparatus financings and $9.Four million of warrant and fairness investments. The Firm continues to shift its portfolio to floating fee loans with roughly 59.6% of its debt portfolio at floating charges as of March 31, 2022.

Proceeds acquired from repayments of the Firm’s debt investments in the course of the first quarter totaled roughly $96.5 million, which included $69.7 million from early debt repayments and $26.Eight million from regular amortization. As well as, the Firm acquired proceeds of $62.Three million from the sale of fairness and warrant investments primarily associated to 4 portfolio corporations. The funding portfolio elevated by $123.2 million on a price foundation, a rise of 15.4%; and by $45.9 million on a good worth foundation, a rise of 5.3% as in comparison with December 31, 2021. The decrease improve on a good worth foundation was as a result of sale of the appreciated positions in Lucid and Matterport. 

As of the top of the primary quarter, loans to 3 portfolio corporations have been on non-accrual standing with a complete truthful worth of roughly $4.Zero million, or simply 0.5% of the Firm’s debt funding portfolio at truthful worth.  

The next desk exhibits the distribution of the Firm’s mortgage and tools financing investments on the 1 to five funding danger ranking scale at truthful worth as of March 31, 2022 and December 31, 2021 ({dollars} in 1000’s):

				March 31, 2022					December 31, 2021
Funding Danger Score Scale Vary		Designation		Investments at Honest Worth			Proportion of Complete Portfolio		Investments at Honest Worth			Proportion of Complete Portfolio
4.0 – 5.0		Very Robust Efficiency		$	80,592		9.4%		$	84,785		11.5%
3.0 – 3.9		Robust Efficiency			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/Exercise			3,286		0.4%			4,444		0.6%
		Complete		$	853,799		100.0%		$	735,968		100.0%

As of March 31, 2022, the Firm’s mortgage and tools financing investments had a weighted common danger ranking rating of three.1 as in comparison with 3.Zero as of December 31, 2021.

Secondary Providing

In April 2022, subsequent to quarter-end, the Firm closed an underwritten public providing of $50.Zero million of shares of its frequent inventory at a public providing worth of $18.15 per share. In reference to the providing, the underwriters exercised a 30-day choice to buy as much as 413,226 further shares of its frequent inventory producing an extra $7.5 million.  

Liquidity and Capital Sources

As of March 31, 2022, the Firm had roughly $94.7 million in obtainable liquidity, together with $28.7 million in unrestricted money and money equivalents. On the finish of the interval, the Firm had roughly $66.Zero million in obtainable borrowing capability below its credit score facility with KeyBank, topic to present phrases and advance charges and regulatory and covenant necessities. Subsequent to the top of the primary quarter, the entire capability below the KeyBank Credit score Facility was expanded by an extra $100.Zero million to a complete of $400.Zero million and obtainable borrowing capability was elevated to $275.Zero million with the addition of MUFG Union Ltd. to the banking syndicate and a rise in availability from KeyBank N.A.

As of March 31, 2022, Trinity Capital’s leverage or debt-to-equity ratio was roughly 120% as in comparison with 104% as of December 31, 2021. The rise within the leverage ratio was primarily attributable to borrowings below the KeyBank Credit score Facility.

Distributions

On March 17, 2022, the Firm’s Board of Administrators 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 report as of March 31, 2022. Along with the common quarterly dividend, the Firm’s Board of Administrators declared a brand new supplemental money dividend of $0.15 per share within the first quarter, with the intent to declare equal particular dividends within the second, third and fourth quarters of 2022 for a complete of $0.60 per share in 2022, topic to future Board of Director approval.

Portfolio Firm M&A and IPO Exercise

As of Might 9, 2022, Trinity Capital held debt, fairness or warrant investments in two portfolio corporations that just lately accomplished their de-SPAC transactions and two further corporations which have entered into definitive agreements to go public through particular objective acquisition corporations (“SPACs”).

On November 10, 2021, E la Carte, Inc., (d/b/a Presto, Inc.), introduced it had entered right into a definitive merger settlement with Ventoux CCM Acquisition Corp. (Nasdaq: VTAQ). Trinity Capital initially dedicated $10.Zero million in debt financing starting in March 2016 and held warrants for 104,284 shares of frequent inventory, 497,183 shares of most popular Collection A inventory and 106,841 shares of Most popular Collection AA-1 inventory as of March 31, 2022.

On December 13, 2021, Footprint Worldwide Holding, Inc. introduced it had entered right into a definitive merger settlement with Gores Holding III (Nasdaq: GIIXU). Trinity Capital initially dedicated $18.Zero million in tools financing in February 2020 and held $17.Eight million in secured loans and a warrant for 115,695 shares of frequent inventory as of March 31, 2022.

On February 2, 2022, Greenlight Biosciences accomplished its de-SPAC merger with Environmental Influence Acquisition Corp and started buying and selling on the Nasdaq below the ticker image “GRNA.” Trinity Capital initially dedicated $11.Three million in tools financing starting in January 2021 and held $8.6 million in tools financing and 23,017 shares of frequent inventory as of March 31, 2022.

On March 2, 2022, Rigetti & Co., Inc. accomplished its de-SPAC merger with Supernova Companions Acquisition Firm II, Ltd. and started buying and selling on the Nasdaq below the inventory image “RGTI.” Trinity Capital initially dedicated $12.Zero million in debt financing starting in April 2021 and held $32.Zero million in secured loans, 50,000 shares of frequent inventory and a warrant for 783,132 shares of frequent inventory as of March 31, 2022.

Senior Management Appointments

On March 17, 2022, the Firm introduced that Gerry Tougher was promoted to function the Firm’s first Chief Working Officer, and Ron Kundich was promoted to Chief Credit score Officer, succeeding Mr. Tougher in that position. These promotions will develop and deepen the Firm’s administration group because it continues to execute towards its long-term strategic plan.

On April 11, 2022, the Firm introduced the appointment of Rob Lake as Managing Director, Life Sciences in San Diego, California. Mr. Lake, a veteran within the enterprise ecosystem, has been supporting enterprise capital-backed development stage corporations for greater than 18+ years.

Convention Name

Trinity Capital will maintain a convention name to debate its first quarter 2022 monetary outcomes at 2:00 p.m. Pacific Time (5:00 p.m. Japanese Time) on Monday, Might 9, 2022.

To hearken to the decision, please dial (866) 831-8713, or (203) 518-9822 internationally, and reference Convention ID: TRINQ122 if requested, roughly 10 minutes previous to the beginning of the decision. 

A taped replay shall be made obtainable roughly two hours after the conclusion of the decision and can stay obtainable for seven days. To entry the replay, please dial (800) 938-0997 or (402) 220-1541.

About Trinity Capital Inc.

Trinity Capital (Nasdaq: TRIN), an internally managed specialty lending firm that has elected to be regulated as a enterprise growth firm below the Funding Firm Act of 1940, as amended, is a number one supplier of debt, together with loans and tools financing, to development stage corporations, together with venture-backed corporations and corporations with institutional fairness traders. Trinity Capital’s funding goal is to generate present earnings and, to a lesser extent, capital appreciation by means of investments consisting primarily of time period loans and tools financings and, to a lesser extent, working capital loans, fairness and equity-related investments. Trinity Capital believes it’s certainly one of solely a choose group of specialty lenders that has the depth of information, expertise, and monitor report in lending to development stage corporations.

Ahead-Wanting Statements

This press launch could include “forward-looking statements” inside the which means of the Non-public Securities Litigation Reform Act of 1995. Statements apart from statements of historic details included on this press launch could represent forward-looking statements and usually are not ensures of future efficiency or outcomes and contain a lot of dangers and uncertainties, together with the impression of the COVID 19 pandemic on the financial system, monetary markets, our enterprise, our portfolio corporations and our business. Precise outcomes could differ materially from these within the forward-looking statements because of a lot of elements, together with these described every so often in filings with the Securities and Trade Fee (“SEC”). The Firm undertakes no obligation to replace any forward-looking assertion made herein. All forward-looking statements communicate solely as of the date of this press launch. Extra data on dangers and different potential elements that might have an effect on the Firm’s monetary outcomes, together with essential elements that might trigger precise outcomes to vary materially from plans, estimates or expectations included herein or on the webcast/convention name, is included within the Firm’s filings with the SEC, together with within the “Danger Elements” and “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” sections of the Firm’s most just lately filed annual report on Type 10-Okay and subsequent SEC filings.

TRINITY CAPITAL INC. Consolidated Statements of Property and Liabilities (In 1000’s, besides share and per share knowledge)
		March 31,			December 31,
		2022			2021
		(Unaudited)
ASSETS
Investments at truthful worth:
Management investments (value of $39,167 and $38,994, respectively)		$	28,057		$	32,214
Affiliate investments (value of $41,621 and $41,609, respectively)			28,941			32,192
Non-control / Non-affiliate investments (value of $840,263 and $717,253, respectively)			862,350			809,064
Complete investments (value of $921,051 and $797,856, respectively)			919,348			873,470
Money and money equivalents			28,684			31,685
Restricted money			—			15,057
Curiosity receivable			6,482			5,551
Deferred credit score facility prices			2,188			2,308
Different property			9,237			9,047
Complete property		$	965,939		$	937,118
LIABILITIES
KeyBank Credit score Facility		$	134,000		$	81,000
August 2026 Notes, internet of $2,535 and $2,679, respectively, of unamortized deferred financing prices			122,465			122,321
2025 Notes, internet of $3,319 and $3,616, respectively, of unamortized deferred financing prices			121,681			121,384
December 2026 Notes, internet of $1,749 and $1,842, respectively, of unamortized deferred financing prices			73,251			73,158
Convertible Notes, internet of $2,361 and $2,515, respectively, of unamortized deferred financing prices and low cost			47,639			47,485
Credit score Suisse Credit score Facility			—			10,000
Distribution payable			15,389			9,803
Safety deposits			11,549			10,840
Accounts payable, accrued bills and different liabilities			15,924			14,594
Complete liabilities			541,898			490,585
NET ASSETS
Widespread inventory, $0.001 par worth per share (200,000,000 licensed, 27,982,842 and 27,229,541 shares issued and excellent as of March 31, 2022 and December 31, 2021, respectively)			28			27
Paid-in capital in extra of par			370,570			368,609
Distributable earnings/(gathered loss)			53,443			77,897
Complete internet property			424,041			446,533
Complete liabilities and internet property		$	965,939		$	937,118
NET ASSET VALUE PER SHARE		$	15.15		$	16.40

TRINITY CAPITAL INC. Consolidated Statements of Operations (In 1000’s, besides share and per share knowledge) (Unaudited)
		Three Months Ended			Three Months Ended
		March 31, 2022			March 31, 2021
INVESTMENT INCOME:
Curiosity earnings:
Management investments		$	1,373		$	1,307
Affiliate investments			428			438
Non-Management / Non-Affiliate investments			26,605			14,600
Complete curiosity earnings			28,406			16,345
Charge earnings:
Non-Management / Non-Affiliate investments			3,439			975
Complete charge earnings			3,439			975
Complete funding earnings			31,845			17,320
EXPENSES:
Curiosity expense and different debt financing prices			6,798			4,616
Compensation and advantages			6,455			3,996
Skilled charges			832			647
Common and administrative			1,477			750
Complete bills			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:
Management investments			—			—
Affiliate investments			—			—
Non-Management / Non-Affiliate investments			52,644			2,595
Web realized achieve/(loss) from investments			52,644			2,595
NET CHANGE IN UNREALIZED APPRECIATION/(DEPRECIATION) FROM INVESTMENTS:
Management investments			(4,331)			(7,554)
Affiliate investments			(3,264)			(6,312)
Non-Management / Non-Affiliate investments			(69,723)			29,342
Web 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		$	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

SOURCE Trinity Capital Inc.