TRIN Q2 2025 Update: Increased Portfolio Activity
TRIN Quick Quarterly Update (June 30, 2025)
Target Prices: No change for now and will be discussed after updating the watch list information and projected dividends.
Dividends: The company has not yet announced dividends for Q3 2025.
Earnings: Reported between its base and best-case projections, due to much higher than expected portfolio growth combined with higher prepayment-related income ($109 million of early debt repayments), including accelerated OID and EOT, prepayment penalty, and related fees (shown later). However, there was also higher ‘Employee Compensation’, likely related to the increased portfolio activity.
Payment-in-Kind (“PIK”) Income: Remains low, at around 2.1% of total income
Leverage: Debt-to-equity ratio decreased from 1.15 to 1.12 due to 5.7 million shares issued through its ATM offering program, raising $82 million in net proceeds, which was around a 9% premium to the previous NAV per share.
Credit Quality: Non-accruals remain 0.8% of the portfolio fair value (0.9% of debt portfolio) due to adding its watch list investment in Medical Sales Training, offset by marking down Emergy, NextCar, and Space Perspective, as well as removing Molekule and Bowery. The amount of investments considered “watch” or “default/workout” increased from 3.9% to 6.2% of total debt investments (not the total portfolio).
NAV Per Share: Increased by $0.22 or 1.7% (from $13.05 to $13.27) due to net portfolio appreciation adding $0.10 per share, accretive share issuances adding $0.10 per share, and over-earning the dividend by $0.02 per share (after excise tax).
Realized Loss: $8.3 million or $0.13 per share, “primarily due to the workout of one secured loan”, which was Bowery Farming.
This information will be discussed in the updated TRIN Deep Dive Projection report along with updated projections, target prices, and watch list investments, taking into account guidance from management on the earnings call and the following subsequent events:
For the period from July 1, 2025, to August 4, 2025, the company issued and sold 717,285 shares of its common stock at a weighted-average price of $14.32 per share and raised $10.2 million of net proceeds after deducting commissions to the sales agents on shares sold under the Equity ATM Program.
On July 3, 2025, the company issued and sold $125.0 million in aggregate principal amount of its unsecured 6.750% Notes due 2030 under its shelf Registration Statement on Form N-2. The proceeds were used to pay down a portion of the existing indebtedness outstanding under the KeyBank Credit Facility.
On July 8, 2025, the company and certain of its affiliates were granted an exemptive relief order from the SEC that permits the company to enter into certain negotiated co-investment transactions alongside certain of its affiliates in a manner consistent with its investment objective, positions, policies, strategies, and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with the Order.
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