Trinity Capital Inc. (NASDAQ:TRIN) Q1 2024 Earnings Call Transcript

Michael Testa: Michael here. I just wanted to talk a bit about why we went into the unsecured market. I think in the past quarter, we were pleased with the execution on that deal and that size. And that again, it was really a consistent approach of laddering out our maturities. We’re going to continue to tap the market, whether it’s secured or unsecured. And in our revolver with KeyBanc, we have 10 other banks in there. So we’re happy having that diversified across that. Also, the liquidity through a joint venture and we upsized the facility across two additional banks in the JV facility. So we look at that as a risk mitigant to diversify our funding sources. And then long-term, vehicles under the RIA adding to that flexibility of multiple funding sources, debt and equity.

Christopher Nolan: Great. Is the plan to replace these maturing notes with secured borrowings mature?

Michael Testa: Sorry, can you repeat the question?

Christopher Nolan: Yes. Are you going to use more secured funding as these unsecured notes mature?

Michael Testa: Yes, that’s definitely an opportunity for us. We’ve been in discussions. We’ve seen a lot of our peers use a CLO structure for securitizing and increasing our leverage. I think we have room with our current leverage range that we’re operating in. But again, I think diversifying our lending — our borrowing sources is important. And I think having the ability across 10 different banks currently in our syndicate and in discussions expanding that through the current revolver or additional revolvers in the future.

Kyle Brown: The other key point there, I think, Chris, you had mentioned before about having exposure to one bank. We’ve actually — we have 10 banks in that syndicate. It’s growing. We’ve got close relationships with all of those banks and that was strategic. We want that to be diversified across multiple banks.

Operator: And it appears that we have no additional questions at this time.

Kyle Brown: Okay. Well, listen, we’re really proud of our first quarter results, and we look forward to updating you on our next call in August. We look — like to just thank everybody for participating in the call today. Appreciate your interest and investment in Trinity Capital. Have a great rest of your day.