TriplePoint Venture Growth BDC Corp. (NYSE:TPVG) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01

On March 1, 2021, TriplePoint Venture Growth BDC Corp. (the “Company”) and certain qualified institutional investors entered into the First Supplement, dated as of March 1, 2021 (the “First Supplement”), to the Master Note Purchase Agreement, dated as of March 19, 2020 (the “Note Purchase Agreement”). The First Supplement governs the issuance of $200,000,000 in aggregate principal amount of the Company’s 4.50% Series 2021A Senior Notes due 2026 (the “Series 2021A Notes”). The Series 2021A Notes, which were issued on March 1, 2021 in a private placement, bear a fixed interest rate of 4.50% per year and will mature on March 1, 2026, unless redeemed, purchased or prepaid prior to such date by the Company in accordance with their terms.

Interest on the Series 2021A Notes will be due semiannually on March 19 and September 19 each year, beginning on September 19, 2021. The Series 2021A Notes may be redeemed in whole or in part at any time or from time to time at the Company’s option at par plus accrued interest to the prepayment date and, if applicable, a make-whole premium. In addition, the Company is obligated to offer to prepay the Series 2021A Notes at par plus accrued and unpaid interest up to, but excluding, the date of prepayment, if certain change in control events occur. The Series 2021A Notes are general unsecured obligations of the Company that rank pari passu with all outstanding and future unsecured unsubordinated indebtedness issued by the Company; provided, however, in the event that the Company creates, incurs, assumes or permits to exist liens on or with respect to any of its property or assets in connection with future secured indebtedness of more than an aggregate principal amount of $25 million, the Series 2021A Notes and the Company’s outstanding 4.50% Series 2020A Senior Notes due March 2025 will generally become secured concurrently therewith, equally and ratably with such indebtedness.

The Company intends to use the net proceeds from this offering to redeem all of its outstanding 5.75% fixed-rate notes due 2022 ($74.75 million in aggregate principal amount) and to use the remaining proceeds to repay a portion of the outstanding borrowings under its $350.0 million revolving credit facility, to fund investments in accordance with its investment objectives and for other general corporate purposes.

The Note Purchase Agreement, as modified by the First Supplement, contains customary terms and conditions for senior unsecured notes issued in a private placement, including, without limitation, affirmative and negative covenants such as information reporting, maintenance of the Company’s status as a business development company within the meaning of the Investment Company Act of 1940, as amended, a minimum asset coverage ratio of 1.50 to 1.00, a minimum interest coverage ratio of 1.25 to 1.00, and minimum stockholders’ equity of $216,129,000, as adjusted upward by an amount equal to 65% of the net proceeds from the issuance of shares of the Company’s common stock subsequent to December 31, 2019. In addition, in the event that a Below Investment Grade Event (as defined in the Note Purchase Agreement) occurs, the Series 2021A Notes will bear interest at a fixed rate of 5.50% per year from the date of the occurrence of the Below Investment Grade Event to and until the date on which the Below Investment Grade Event is no longer continuing.

The Note Purchase Agreement, as modified by the First Supplement, also contains customary events of default with customary cure and notice periods, including, without limitation, nonpayment, incorrect representation in any material respect, breach of covenant, cross-default under other indebtedness of the Company or subsidiary guarantors, certain judgments and orders, certain events of bankruptcy, and breach of a key man clause relating to the Company’s Chief Executive Officer, James P. Labe, and the Company’s President and Chief Investment Officer, Sajal K. Srivastava.

The Series 2021A Notes were offered in reliance on Section 4(a)(2) of Securities Act of 1933, as amended (the “Securities Act”). The Series 2021A Notes have not and will not be registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States except to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, as applicable.

The description above is only a summary of the material provisions of the Note Purchase Agreement and the First Supplement and is qualified in its entirety by reference to the copies of the Note Purchase Agreement and the First Supplement, which are incorporated by reference or filed as Exhibits 10.1 and 10.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.

The Company issued a press release on March 1, 2021 to announce the issuance of the Series 2021A Notes, a copy of which is attached hereto as Exhibit 99.1.

The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

(d) Exhibits.

10.2	First Supplement to Master Note Purchase Agreement, dated as of March 1, 2021, by and among the Company and the Additional Purchasers party thereto
99.1	Press Release, dated March 1, 2021

(1)	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on March 19, 2020 and incorporated herein by reference.

 

  

TriplePoint Venture Growth BDC Corp. Exhibit
EX-10.2 2 ea136686ex10-2_triplepoint.htm FIRST SUPPLEMENT TO MASTER NOTE PURCHASE AGREEMENT,…
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About TriplePoint Venture Growth BDC Corp. (NYSE:TPVG)

TriplePoint Venture Growth BDC Corp. is a closed-end, non-diversified management investment company. The Company’s investment objective is to maximize its total return to stockholders primarily in the form of current income and, to a lesser extent, capital appreciation by primarily lending with warrants to venture growth stage companies focused in technology, life sciences and other high growth industries, which are backed by TriplePoint Capital LLC’s (TPC) select group of venture capital investors. The Company targets investment opportunities in venture growth stage companies backed by venture capital investors. The Company originates and invests primarily in loans that have a secured collateral position and are used by venture growth stage companies to finance their continued expansion and growth, equipment financings and, on a select basis, revolving loans. The Company is managed by TPVG Advisers LLC.