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Trinity Capital Corporation Completes $52 Million Capital Raise and Recapitalization
Posted: 12/19/2016 | Castle Creek

LOS ALAMOS, N.M.–December 19, 2016–Trinity Capital Corporation (the “Company” or “Trinity”), parent company of Los Alamos National Bank (“LANB”), announced today that it closed its previously announced private placement of 2,661,239 shares of its common stock at $4.75 per share and 82,862 shares of its Series C preferred stock at $475.00 per share to Castle Creek Capital Partners VI, L.P. (“Castle Creek”), Patriot Financial Partners II, L.P., Patriot Financial Partners Parallel II, L.P. (together with Patriot Financial Partners II, L.P., “Patriot”) and Strategic Value Bank Partners, LP (collectively, the “Investors”), for gross proceeds of approximately $52.0 million.

The Company intends to use approximately $49.9 million of the gross proceeds to repurchase all of the Company’s outstanding Series A and Series B preferred securities originally issued under Treasury’s Capital Purchase Program and, with the addition of a $15.0 million dividend from LANB, approximately $10.2 million to bring current the deferred interest on the Company’s four series of trust preferred securities.  The remainder of the proceeds, following the payment of certain expenses associated with the private placement, will be used for other general corporate purposes.

Chairman Jerry Kindsfather said, “With this capital injection, we believe that the Company has now addressed the indebtedness that accumulated before the financial downturn, the continuing accumulation of which had become extremely burdensome.  We welcome Castle Creek, Patriot and Strategic Value Bank Partners into our shareholder family.”

Company President and Chief Executive Officer John Gulas added, “We believe that the closing of this investment opens a new chapter for the Company.  We now expect to focus less and less on yesterday’s issues and, instead, we can implement a strategic plan that provides for realizing opportunities for growth.  This new investment also represents an endorsement of the direction we have been pursuing.  In that regard, we are gratified for our new shareholders’ confidence in our approach to community banking.”

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