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KeyBank Leads New $300MM Credit Facility to Trinity Capital

November 02, 2021, 07:09 AM
Filed Under: Lender Finance

Trinity Capital, a leading specialty lending company that provides debt, including loans and equipment financing, to growth stage companies backed by technology banks, venture capital and private equity firms, entered into a new $300 million credit facility led by KeyBank. 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 ("LIBOR") 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 N.A. will serve as collateral custodian and paying agent.

The announcement of the new KeyBank credit facility comes as Trinity continues to diversify its capital structure and enhance financial flexibility to support continued portfolio growth. 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.

David Lund, Chief Financial Officer of Trinity, said: "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. 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," said Matt Taylor, managing director, group head at KeyBank. "Considering the strength and experience of the management team, Trinity is an excellent addition to our lending portfolio."

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