Investment Banking - Trinity Capital Corporation
Transactions | Banking
Client: Trinity Capital Corporation
Transaction Type: Private Placement
Role: Sole Placement Agent
- Headquartered in Los Alamos, New Mexico, Trinity Capital Corporation is the holding company for Los Alamos National Bank, with six branches serving Los Alamos, White Rock, Santa Fe and Albuquerque. As of June 30, 2016, Trinity had approximately $1.4 billion in assets, $1.3 billion in deposits, $800 million in loans and 3.55% tangible common equity to tangible assets.
- Trinity announced today that it has entered into a stock purchase agreement with affiliates of Castle Creek Capital, Patriot Financial Partners and Strategic Value Bank Partners, pursuant to which it expects to raise aggregate gross proceeds of approximately $52 million at an offering price of $4.75 per common share and $475.00 per share of a new Series C non-voting mandatorily convertible non-cumulative preferred stock.
- Each of Castle Creek’s and Patriot’s investment will represent a 9.9% voting common ownership interest and an additional ownership interest of the Series C preferred stock which will convert to shares of non-voting common stock upon the authorization of such securities by existing shareholders. Trinity will seek shareholder approval for the authorization of non-voting common stock at its next annual shareholder meeting.
- Trinity intends to use the net proceeds of the offering to repurchase at par, plus all deferred dividends, 100% of outstanding Series A and Series B preferred securities originally issued under Treasury’s Capital Purchase Program, bring current the deferred interest on four series of trust preferred securities and for general corporate purposes.
- Within one year following completion of the private placement, Trinity is permitted to conduct a rights offering to existing shareholders of up to $10.0 million of voting common stock. Shares in the rights offering will be sold at the same $4.75 purchase price as shares of common stock sold in the private placement. Under the terms of the agreement, the investors participating in the private placement are not entitled to participate in the rights offering.
- Boenning is serving as the sole placement agent for Trinity Capital Corporation.