TRIN - Earnings call 1 2021 | Trinity Capital Inc.

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Operator

Good afternoon. My name is Lisa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Trinity Capital's First Quarter 2021 Earnings Conference Call.

Our host for today's call are Steve Brown, Chairman and Chief Executive Officer; David Lund, Chief Financial Officer; and Sarah Stanton, General Counsel. Kyle Brown, President and Chief Investment Officer; Gerry Harder, Chief Credit Officer; and Michael Testa, Chief Accounting Officer are also present.

recorded p.m. be being beginning for is X:XX at call and available will replay Today's Eastern. dial-in is replay The number is the XXXXXXX. PIN (XXX) XXX-XXXX, and call is to Instructions] It now pleasure turn [Operator my Sarah the Stanton. to over ahead. go Please

Sarah Stanton

Trinity's you, ir.trincapinvestment.com. market for first XXXX close be call financial and and earnings first released were from XXXX. the everyone, Trinity can quarter to Thank Capital's Investor Lisa, just at conference results Trinity's of Relations website quarter welcome, after accessed today's

the of passcode call Trinity's have earnings arranged replay We the and a or page number release. using provided at by for web today's telephone in

the Before of of may this statements. Please responsibility securities call from reading. that at statements based we cause our speaks would longer any May reported update on We be information deemed Capital transcript recent remind implied that expressed advised relating to or you factors call, no on And refer most encourage that replay note to not and made or certain Trinity Because some to factors. obligation facts involve only today, time you of no SEC statements XXXX. everyone are accurate this forward-looking uncertainties, be during materially federal on statements are filings forward-looking as these statements. could that any by and listening begin, I forward-looking information therefore, risk X, assumes time-sensitive laws. forward-looking may historical information for to differ known including those are there guidance, statements to financial that these risks any unknown important like these or actual to results under

Capital's me to CEO, introduce that, and Brown. Chairman allow With Trinity Steve

Steven Brown

the who all both the we're our and our you aspects different to and for Sarah, are continued earnings report of financial are I well. first today. and those the you, hope business. and encouraged time doing healthy by We're progress Thank to that in you joining excited of results all us thank post-IPO,

the are Trinity assets. and top adding venture-backed the and our plans. The continues markets. talent build Trinity's and on to space. Technology and Trinity's as systems offering funnel. commitment have people culture in operational Each opportunities, to expansion management and our grow our we is priority we improving portfolio differentiated the us has serve to our serving line team top are providing innovation And scale pipeline goal in credit always expertise as a define technology category are we in platform valuable finance to and for in teams our investors which to is in our process a as well. our of we most emerging growth and we we prioritize been result, relationship-based origination and a seeing our from its to product business that with our space, differentiate is

of our first proud a we've declared appears early of February, been we where new that included niche million over venture XX just serve deployments originated and in company in our companies. a $XXX per scale for shares. Investor grow we QX the a the and and dividend of we we IPO are grow platform. The new our $XXX we the quarter. since portfolio our our gross goal reporting our quarter across increasing company in listed prior in We our million our issued an equity, in support million funded growth increase We in debt the the raised and million BDC accomplishments and we over emerging be for over market space growing, of results, line Although closing timing NASDAQ, on of this and following as quarter as highlights commitments, was a XXXX, examples we're January publicly and is with Trinity which public just $XX platform. $X.XX in X first to its believe share, right few of dividend to

income This million $X.X share. compares of or investment investment per per income in of $X.X net was net to $X.XX share XXXX. $X.XX million QX QX or

NAV we XXXX. a $XX.XX meaningful share at increase share a compared Our to NAV end per per the of had at of $XX.XX quarter and X%, finished of the

including of cash quality debt credit remains the value performing. Total XX% Our million. fair under over with over credit at facility, $XXX our our was and portfolio strong in availability investments liquidity,

after be down back approximately Our of as paid range the scale the our was ratio continue a We'll credit we IPO in the and X.Xx. quarter facility receiving proceeds. with X.X ratio to we cash to availability as and our using debt-to-equity X.XX target desired at the grow end of our

gate quarter in further Brown, the now particular to Chief market and out business well Kyle our more over quarter Investment believe of to results to finance equipment also expect emerging Dave we're the market dividend to in pleased positioned market. our for declare and the thoughts end post IPO. and subject we the Board the and and approval. Kyle of and some of progress our with grow gain for XXXX of and lending We turn of came strength share to detail of on the general. Kyle? the on the results the a President We how second the space. I'll we progress June, more detail our now at venture during Again, the growth about share operating Officer, are within will call

Kyle Brown

Thank you, everyone. Steve. afternoon, Good

a Trinity during QX, On during strong QX. originations, the for record heels set its continued momentum of we which

team. the was momentum the for been during it added X team by new on building members diligence the our furthered We some including this time, growth quarter, X has team. of While investment

full-time across expertise of varied knowledge board. are and industry employees As we XX of proud today, at and stand the the

We and process we only learning that strong trends much in about have continual and markets we We the space. as technologies expertise a knowing hire and emerging serve. have not to technology of the dedicated but about the commitment as can a

set as played Our industry a and we partners support of type companies. nicely diversification commitment to wide by of diverse range a portfolio out referral has

agtech As fintech, and capital similar to venture frontiertech, foodtech, our the the continue committed correspondingly with diversify industries industry, from in capital AI industries. continues emerge and portfolio robotics to like

deployment another our for pipeline leading top a result with sheets tool term a of a issued goals. reviewed. And with to for accepted. term our one opportunities ultimately, certain QX record of hit like rating These strong coming off of over quarter gathered relative number quarters. funding starts this Our year reviewed Trinity -- our deals gives best at opportunities. And X proprietary opportunities our in are Trinity. in are of years We've target sheets regarding the our by and team our many future is these for to our regarding data statistical record of opportunities system. indicators record ability what was us This indicator credit of team originations Trinity in credit was brought by our back-to-back funnel look will funding quarter-to-quarter. XXXX should nice predictive year our what

industry provides grow, continues diversification equipment nice product, in Our and business risk. and differentiation which to finance

goal that they of can receivable banks of can the to form tech the other our what space, can we and from serve what with We they than in continue term our ways financing incremental emerging in to form stated get customers needs providing growth to get debt. the explore the the financial customers in of

a gross during repayments, be this million quarter in deployments we million new portfolio repayments. from for million in is of loans, portfolio companies and X included $XX unchanged. were comprised were sector which financings Western was portfolio $XX was secured of to markets All thought to million $XX equity-related across and deployments at were our region finished unfunded quarter to debt portfolio early the gain gross and Gross This the of the portfolio $XX million portfolio us was debt our in portfolio were investments, finance in on commitments and $XX was XX% was deployments existing allocated largely scientific million deployments for serve. Gross From of of Geographically, companies. million activity by technical Northeast. We XX%, and the X XX% warrants. XX%. and manufacturing helping trade professional XX% million allocations goal XX with million the offset the venture perspective, of allocated partially to XX at our $XXX $XX at equity companies. The our in about $XXX top across $X.X remained including X first and in retail our equipment composition to equipment companies. services

there on credit market, this options I'll and portfolio emerging SPAC briefly. quality are solid, in touch activity. the Our including liquidity remains

consider also are seen to We small a be that the our this mature have process has We for companies. our activity other will portfolio SPAC where trend portfolio available anticipate portfolio, there generally of of transaction. Trinity companies options could more number liquidity X in SPAC option. and as positive a companies been a

of We the to about we record. capital $XX.X year industry capital considered of a venture continues serve to an impressive and XXXX, Pitchbook, our venture was considering by growth for total are new optimistic $XX.X According banner which fundraising When our billion fundraising billion, start. the grow. is totaled that set XXXX continued start a QX the to off year encouraged portfolio. The VC of all for to

year-over-year backed more late-stage capital, At all success companies $XX -- of of attractive healthy venture QX, deployed. in the market significant companies by become combined company market In deployment encouraged increase. growth-stage Growing venture our target investment of makes terms billion a with was exits. as IPO the a capital-backed the

over our momentum. with leading David? We our benefit and call network to continues compounding that David over institutional that, benefits this We Lund continue these discuss are time. With to long-standing positioned I'll banks detail. financial in to more investors, uniquely equity on and that entrepreneurs performance will capitalize the direct from technology believe relationships turn to origination

David Lund

you, joining call. and Thank today's you, thank Kyle, us everyone, on for

quarter a Trinity start has Steve strong Kyle very to the and team. with mentioned, been As XXXX this

net We million are and the approximately issuance of we we on closed approximately of our million common of very stock. where proud X, raised proceeds shares successful IPO February X of $XXX the

I had on performance, and liquidity. my and we following performance, portfolio performance, the portfolio as investment operating start growth, NAV be With growth. and performance I discuss return will shortly. I portfolio credit addition, key will remarks focusing that, with In solid will activity areas:

and funding We and commitments million companies. $XXX portfolio $XX.X $X with to During new in deployed X activity. in in portfolio into funded X of $XX the million million first companies, warrants we this We equipment XX across to received connection secured million loans loans $XX.X we quarter, funded million entered companies. in

We including our investments in companies, Atieva. $XX million invested also in the direct portfolio exercise warrant of X in equity

debt our As we ended rate floating of transitioning the as the portfolio portfolio of continued with securities. floating of a result goal in we our the loans investment activity, approximately quarter to new rate XX%

During capital ability borrowers repayments, the raise million $XX bank of received which of debt from repay principal and in we repayments, $XX or to were to additional the their equity which second indicates debt. million our quarter, to lenders our move more conventional early quality

to higher $X to a of interest income. turn million of operating $XX.X in or basis, approximately fee total related million This approximately of $XXX in valuation average portfolio. I the $XXX $X million, result over due and increase loan gains, and $XX.X results. increase of appreciation On weighted total prior by early outstanding net a quarter. warrant X.X% activity cost of repayments compared income the investment net was value and of in the XX% discussed to to million of increase our and attributed appreciation. of As increased recorded investment million will now portfolio in our income million the approximately On our accretive $XX.X I comprised from and a income portfolio to The costs at increase in of a unrealized debt primarily and equity increase $X net fair we million the grew income balance to investment just a in X.X% represents increased $XXX to million as primarily $XX.X was GAAP the $XX income million our changes basis, from million QX. million. unrealized portfolio realized our The

on debt repayments. We million XX.X% in QX in the XXXX. was as prior yield on our of the of from $X.X of effective increased Our early portfolio XX.X%, million financing which interest costs quarter, $X.X full various for our and QX driven quarter which down was million under by by facilities compared to incurred lower from income notes, expense interest deferred amortization by the our facility for our Credit QX paid from Interest the with $XX was convertible our of This in outstanding were credit proceeds IPO. we was $XX facility Suisse offset QX. expense of as million on accelerated higher

X.X%, prior interest Suisse debt, convertible under which quarter plus balance Our amortization, debt to increased and weighted LIBOR higher the our notes the cost was costs including of [ outstanding due ] which and on X% borrowing from of lower has the X.XX%. fee delivered cost Credit facility, average

in the We The due to facility by the credit to XXXX valuation QX. during were slightly And million first expect QX decrease personnel to to the in offset with $XXX,XXX the incurred higher was was lower addition $X was expense to was future QX compensation accounting obligations. Compensation fund fees $XXX,XXX due expense and compared to to increase $XXX,XXX expense to this as $XXX,XXX X cost we salary fees the QX. decrease as future in compared $X.X we driven higher in company. at under during of quarter. Professional D&O was our now lower connection expense QX. G&A decrease debt in lower costs compared public G&A to of primarily decrease The -- QX. are compared in that borrow variable in in QX G&A insurance the Trinity team in expense million by a QX in

QX expense slightly G&A over Downtown headquarters expect QX expense rent for as new increase we incur higher commencing our in Phoenix. We located to in

result connection been impact $X.X share. net would The quarter for X million $X.XX the the quarter-over-quarter, previously, million XXXX. of stock activity except of investment to higher per for noted the As a income or was in in common with million per share NII QX $X.X per This $X.XX issued have shares of share meaningfully or our IPO. compares the

proceeds unrealized $XX.XX QX, our of net gains million share million investments by in end on gain appreciation QX, $XX.X net on QX in net of of of Atieva $X million mark-to-market to The portfolio The equity warrant of the warrant primarily million during million. The by million, appreciation. balance NAV $XXX and appreciation an by the to balance increase per fair the of the of quarter, unrealized we to of appreciation driven value increase million, net in per the million by we driven gains fair recorded our primarily of million to the share assets of net was million $XX.X due was $XX.XX our warrant. primarily the from at realized $X.XX in $XX.X from adjustments value IPO, unrealized appreciation $X.X million realized in and and warrant unrealized increase one of primarily equity appreciation portfolio The that $X.X the equity recognized investment, During Matterport realized the $X.X realized portfolios. the reversal end of gains of warrant exercised our company. at related unrealized increased the primarily net mark-to-market by of to of and a from our net our in appreciation offset in million the of portfolio principally increased flip to depreciation Atieva recognized net quarter. due from and $X.X a portfolio. Net adjustments $X $X.X by $XXX driven appreciation net We

of Our XXXX. credit that had quality The at inherited same acquired we nonaccrual portfolio our XX% from with the strong of portfolio X loans over are X remains beginning on the loans the performing. we

of nonaccruals. $X.X have million. we value So loans cost carry million $X.X had fair X of a Those no new a basis and

leverage XX% unrestricted facility, equivalents was liquidity ratio $XX XXXX, was of existing conditions. subject Turning million and cash approximately asset million borrowing to to and under and approximately our million, was now $XX of coverage and March terms End-of-period XXX%. credit Available our liquidity. as cash $XXX including XX, in capacity

approval June, by Operator? earnings now XX XXXX, a for Lastly, we on Directors. With anticipate cash per of XXX% that April was for for $X.XX subject open and paid March will for dividend XX, of the dividend We NII which our I the by XXXX to declared coverage call quarter. XXXX second during first of quarter GAAP generated of quarter a declaring share the our that, questions. Board on the

Operator

the Your comes Instructions] line with Lynch Ryan question first [Operator of KBW. from

Ryan Lynch

do one from Obviously, a equity, today. that would venture that an just competitor, your exit alternative the I has as capital the look would to an standpoint as your support well as be raised into to of of to lending a help would compared as equity you space rounds. from that guys would current raise they think lending. additional company think I venture product lot First also view to to venture with the been and is market there's side. that, flowing But

what about competitive from standpoint, talk a capital the venture outlook in an a seeing you and can deployment you're standpoint space? standpoint So from from lending

Steven Brown

the it, is is from perspective I question will the And equity, more create I'll Yes. we're competition net-net, this and good for always and market because a we've think said our competition. is robust think solution debt a we Thanks to this help question. equity in venture Ryan, savings Steve. before, an But No that say biggest space. market dilution. the for equity it that create be always

believe now don't we I right don't a And impact. that see we really -- meaningful

and significantly, our are reported, quarter. last all record Kyle As of year then up another opportunities

have those. to in opportunities And capital the is when kind that advantage so see you what market want of of and more you take

I we're be always but as think So net-net, that a competition. seeing will positive, there

any Kyle, on that? thoughts

Kyle Brown

say competition acceptance the changes term rates, and the debt track yes, accepted equity last quarter-over-quarter I'd as an issued, ratios thing we've from on and quarters. over we significant more Internally, the maybe there's other side The sheet is, seen well. not standpoint, sheet few term

accustomed winning still deals at we're be So more rate but the we're there may to. competition, same

Steven Brown

great. That's

Ryan Lynch

your are going -- know does to product are that, guys you does your market term of going that VC with is you you just guys present guys you of loan a standpoint? does that the that that from equipment increasing financing? with. sort then a affect play that I -- Okay. product And in for that's how probably competitive that where environment, Or out But and dollars, on compete where with competitive kind that impact ballpark different

Steven Brown

Yes. different. with that our it's don't I mean have equipment deals most think investors. do are obviously, I involved financing much of venture companies

the equipment similar in it a in we're view the we of we Again, I of sort It's a in and growing business So finance would and about that. piece the be the we're sort market that way are that seeing bringing, business. think excited continued that of disorganized uptick opportunities our space. still

encouraged what we're be but And equipment going know more to competition to so we're there don't necessarily by finance that's or seeing going there's relative competition hurt us that to business. our

Ryan Lynch

Okay. looking to mentioned then platform. you the guys you are scale to And continue

you XX guys think said people. I you had

your hired first the You organization this guys' you guys talk forward? areas on growing you for Can people are the from in quarter. X that point focusing about

Steven Brown

Yes. sort budget, We've in for X of got, the another I the think, adds year.

going total, I and growth we're But and or grow know, board. the follow it's after David, what are across VCs continue the to in we -- And looking That's that we're to going the originations, going Ryan, investing. where we budget. VCs markets so to as specific you think as area. we is not necessarily you're We're be really have going. the XX see in where any you know, to

were what saying? David, -- think do I But you

David Lund

people that are were first the of quarter X was in saying the hired I originations.

well back-office the team So portfolio as well. as looking build team out that to as we're clearly,

Steven Brown

Yes.

support. that business. X Our of origination effort, collaborative piece we due X that diligence continue so sort all originations of we the grow and those side, consider to have we'll nice of and the in were -- on the specifically a team, origination our And were

Operator

of Christopher with Next Nolan Thalmann. question line from the Ladenburg comes

Christopher Nolan

advantage rate. loans are in Is that when market? you the competitive of are Most deals your a competing for fixed

Steven Brown

We're of was floating it matched portfolio the the to to on So that moving had side. pre-IPO process of in we loan a rate more the fixed fixed, of of relates we when rate nature back that SBA had sort and the portfolio. debt

life of leases over because our fixed the the course one primarily just deal. payment of are Now it's

or so, news something the fixed to to a not that. continuing we're we so So side. you'll -- on we're really really the grow when from And moving set rate that. think upside, portfolio gate, I of rate to there's to set relative like want of what see as downside we up floating the the floors good out we're lot is But XX% loan we'll

Christopher Nolan

on -- financing And Is your equipment the that other lien to relative where loans seniority does in debt? sit it equipment? first

Steven Brown

Yes. Good question.

And the well. can sometimes deal, first equipment. always first on on blanket value And itself. we'll get always to we occasionally, equipment lien equipment position but then So range security as and deal the get a lien the

lien. with a sometimes back a second blanket lien blanket up So or we'll that

it's Sometimes related equipment. the specifically to

of and take or team, at the helping and to credit his we're great loan relative into as not the always the of underwrite us We'll that our Gerry team, whether the account overall a do to value that equipment. job credit looking add security an of additional lien. should we

Christopher Nolan

Great. are reiterating is leverage you target And X.XX? then ratio your

Steven Brown

David?

David Lund

We're that. the portfolio grow additional to up And back be we about walk to as to would target We'll X.X. of we funds X.X end quarter. the put out, at X.XX the back Yes. and at

Christopher Nolan

date And question. Great. the us all? you quarter repayments to with second share David, what at are final can

David Lund

think had this We we've point. did date, at Second quarter don't any repayments early one. I to have

Steven Brown

We did -- yes.

David Lund

that. [ ] Answer ahead. Go

Steven Brown

week Yes. quarter. the We early of first one within the had repayment

David Lund

Yes.

Christopher Nolan

you That in Yes. makes the debt area. venture unusual

Steven Brown

Yes.

David Lund

Yes.

Christopher Nolan

Congratulations.

Operator

comes of with Your line B. Sherbetchyan next the Sarkis question from Securities. Riley

Sarkis Sherbetchyan

in mentioned about $XXX the 'XX originations or originations million On so clearly the and quarter call, you last in alone. million of here investment in $XX first achieving delivered

So this bit a kind the you to of get deployments think on here? of little or aggressive updates more metric? cadence any pull back you'd Do

Steven Brown

mentioned we're And speak year doing, loans on we're on to issued term But we've not that to And term accepted. specific we relative we and sheets putting to we're as guidance we going many for keep got mentioned, perform see market as And our Kyle deals think don't Sarkis. data ultimately the well all takes is continue to we're that what give sheets I then to the into -- we here. how statistical going last get opportunities doing great the numbers opportunities. and indicator it funding even QX. to on

So sort our where headed. well you that bodes goal. we're And for of know

to goal to that we started Our in and continue and we that. is QX, grow, plan

Sarkis Sherbetchyan

today? And kind sits on updates pipeline any of where the

Kyle Brown

mentioned, has and a So into that for I record was trend continued opportunities, QX as QX.

I far, good. would So say so so

Steven Brown

Yes. What was the number of QX? opportunities in

Kyle Brown

have I'd that. on to back get to you

Sarkis Sherbetchyan

Okay. And me. then final one one for

Just looking at the jumped credit displayed, the watch and you've matrix category it sequentially.

see to color wanted on Is that. there just any more it if is credit one Just there's kind that's movement sticking Or there? out? some of

Steven Brown

just necessarily they're going over turn when it reasons, our we're not that in I'm the -- performing. for Yes. a that bad, a to category watch watching Gerry. different And we to category, into are watch and them putting reasons will number category. watch I credits of credits they as reminder, -- for

that, you to color any add Gerry, With do want on that?

Gerald Harder

Sure. Happy to.

operations. to companies debt all financing excess do supportive of So growth got their in these cases, equity pursuing enterprise portfolio in Trinity's sheets cases this X continue we In the all their have category and values and term at quarter. equity credits X are position. watch We've continue and in sponsors

in So QX. end and list, that we're side. management closely what often portfolio our of capital, we're at the those raising on companies looking the this at that's seeing And generally speaking, watch are is

Operator

line the from Securities. Finian question Your Fargo next comes O'Shea Wells with of

Finian O'Shea

all of debt a Would venture of to you of out venture the larger does really that banks are toward demand firms the the favor? capital, much companies tilts that say for -- debt tilt larger say able the things profile? private factor the to pockets finance larger Would these you credit inflows, given provide Just the presumably increased venture VC of question. sort funds, an development firms, are market not deeper that but

Steven Brown

a That's speaking, product a particular, Generally like we good do take they in obviously, risk terms the them what than But they the receivable we banks provide in ourselves say think of different we incremental term question. product, Yes. typically. risks. And and don't we we provide. and -- debt a both, of to there don't we think their directly in they direct capital compete competitor, take with when different to

other markets strategies will liquid in markets more than certainly, a other credit Now little that, and generally And in speaking, banks the robust, that do facilities having tie bit. and will including things do certain that more debt necessarily providing that become said with X%, markets. more are we'll going But have. we're not to of them X%, move against up we their they kinds see capital that they risk, covenants don't in banks X%

will definitely higher capital to there's So the what them can a we pay reason flexible for do what banks and more versus a price for typically do.

that? on thoughts any Kyle, Is that...

Kyle Brown

it. No, you hit

Steven Brown

Yes.

Finian O'Shea

Okay. Very market well. And question. sort then I guess origination just of a

One this that seen quip, little bounce a we've growth venture quarter, of the sphere names the bit. around

of a if company? describe. loan it's level, there. be more high of Or is longer I -- -- sort one a about of understand normal venture this this growth individual term an I to that arena at you'd opportunity but did like Any think like. you issuer, it of more these loan, X-year point? a looks still new venture Is a is for to that a -- that way term stage private able is that is

Steven Brown

that will continues Yes. what the of within Trinity No, say financing realm that, continue I historically particular would fall done has to to and do.

So marketer, business. a that this omni-channel is company their expanding and they're an is

So finding. we're that's the growth that

Operator

UBS. Brock the Vandervliet, comes Instructions] next of [Operator Your line question from

Brocker Vandervliet

on it's XX, the terms interesting. in of Just Slide yield profile,

just yield? at mix there shift? What's in step-up of that that XXX basis sort about sequentially points. causing any pickup, Is Looking

David Lund

lease is the drive have we've we fees what will getting to that we'll in a Yes. some when really is and of financings that. higher yield The also some And upfront. been additional the yield step-up fee upfront do of that

And the up pushing payoffs So the it's I yield mentioned, the early will on also yield. then drive basis. obviously, core as

Brocker Vandervliet

Got it.

to -- there. it's than at plus shifting That's down you? funding. terms What X.XX%. What's to there? kind you think Credit term like that long LIBOR I at I does the that line you more in And down? you Do rolling that refinance Okay. know favorable X.XX%? Suisse Can over draw look through just paid of

David Lund

that to with a facility there's and and next lower an obviously, so because to lower is discussions But certainly long-term facilities overall as assets rolling replacing than a facility cost right That debt so it now. such be we'll we'll recently. entered with we the drive to using through of securitizations of and be cost out one. of stay in then We'll this into year, into the it we've some capital potentially or the are regards of January using some facility that of on enhancing

Brocker Vandervliet

leverage quite you Got than it. And target are a lastly, now. That's the X.XX. of have bit where level I know higher you

Your earnings of fine is level just leverage. this profile at

intermediate move look realistically, profile down to that good? to given pretty we Just level of your here stay earnings for kind or should you term, seems

David Lund

No. Steve We're growth the in portfolio. drive to, the said, looking as

are to continue facility. to back we that doing drawing we're we're we where to to X.X to be the put year against case facility the originations, and on we to that get -- to to which up as So as be anticipate I X.X. going in going funds draw will looking we goes on would that work, additional

Operator

from the line Casey Your with next Alexander of question comes Compass Point.

Casey Alexander

discount. the the for of that that the preserve type can the that position though Was through Atieva curious ahead the your what you as some quarter? went in fair even you And deal stock have SPAC Atieva I'm has sort discount be. I assume why of warrants changes rights And explain you to that kind illiquidity with on might as secondly, exercised you and the lastly, of of opposed Atieva me to hasn't to some closed? Can walk warrants? value

Steven Brown

Yes.

additional to so question, rata we to opportunity at felt we first the shares to we take yes, exercise a at purchase do right our had the had that a valuation round we and the So prior warrants, did of advantage to was pro SPAC.

was thing, it believe we that. So we and the did right

kind specialist Gerry can just And at specialist. it as gone correct through. talk now third-party be have so shares third-party our works that have with is as very what written accurate then is and we of -- we that versus mentioned process And we've up. by asset we through David, warrants. And think valuation a was secondly, we've might our you And valuation valuation went point. closely of Casey through And this

Gerald Harder

Sure, happy to.

March we for So Steve the this asset provider with also closely worked did valuation third-party auditors. and a mentioned, our quarter at leverage

to evidence and facts that quarter. provided the and the some still of the specialist knowable the X that not the was the to least the at the valuation things in close. what's on of known this have at of based QX. The base facts possibility Churchill PIPE transaction including at factors, We valuation by March XX, There's closing would an on are end price fail the merger price about that

there discount price a and those would well. eventualities all to respect of lack Churchill be taken marketability So closing the for And into account. as with factors were

fair So We're it's we marked. the -- it's a fairly believe struck was We rigorous with value. comfortable asset the analysis. where

Casey Alexander

out. the Q Well, isn't Okay.

So quarter-over-quarter? was can you fair the in tell me value how much change

David Lund

Yes.

position $XX our gain quarter. Our unrealized the on million was in

Operator

At this time, there are no further questions.

Steven Brown

next Thank Thank quarter. end right. forward on and your Again, support to at behalf Trinity. the the appreciate hard working All you. you. of to look we your at We reporting you

Operator

conference. today's close concludes This

disconnect. now may You

Trinity Capital (TRIN) 6 May 212021 Q1 Earnings call transcript