Trinity Capital, a specialty lending company that provides debt, including loans and equipment financing, entered into a new $300 million credit facility led by KeyBank as administrative agent and syndication agent. KeyBank is leading the credit facility with a commitment of $75 million, and the facility can accordion to $300 million as additional lenders are added to the lending syndicate, subject to the facility’s credit agreement.
The credit facility has a term of five years, comprised of a three-year revolving period and a two-year amortization period. Borrowings under the facility will bear interest at a rate equal to the one-month London Interbank Offered Rate plus 3.25%, with the ability to scale down to one-month LIBOR plus 2.85% based on certain factors, including the number and composition of the loans in the collateral pool. The credit facility features variable advance rates of up to 60% on eligible loans and up to 64% on eligible equipment finance loans. In addition to KeyBank serving as administrative agent and syndication agent, Wells Fargo Bank will serve as collateral custodian and paying agent.
In addition to the KeyBank credit facility, Trinity recently completed a public offering of $125 million in aggregate principal amount of 4.375% notes due 2026.
“Together, this new credit facility and the oversubscribed bond offering serve as proactive steps towards continuing to strengthen Trinity’s balance sheet, improving our long-term financial liquidity and lowering our overall cost of capital,” David Lund, CFO of Trinity Capital, said. “Teaming with KeyBank will allow us to continue growing our investment portfolio while driving returns for our stakeholders with a partner who demonstrates an understanding of the opportunity of lending to venture-backed companies.”
“KeyBank is pleased to work side by side with the team at Trinity Capital, providing financing options and opportunities for growth,” Matt Taylor, managing director and group head at KeyBank, said. “Considering the strength and experience of the management team, Trinity is an excellent addition to our lending portfolio.”
