The Technology and Life Sciences Division of financial services company Comerica (NYSE:CMA) has provided Trinity Convergence with a $1 million term loan.
‘It is very common for venture backed companies to take out loans for capital expenditures,” says Jeff Crister, president and chief executive officer of Trinity. “Lenders, such as Comerica, work very closely with the venture firms and the companies to provide early-mid stage company loans such as this. Trinity chose to take out the loan for key equipment purchases, while the venture money is used to fund the normal operations of the Company. Comerica is also a strong banking partner for Trinity and we expect they will be long term partner for us.”
Comerica made the loan to Trinity based on a referral from Reston, VA-based Mid-Atlantic Venture Funds, which along with Intersouth Partners of Durham and Core Capital Partners of Washington, D.C., invested $3.1 million in first-round funding in the company in March. The three firms, which continue to show interest in further funding for Trinity, also made a seed investment of $1.5 million in the company last summer.
“It was a referral from a VC firm that we know very well, so based on that referral and after talking to the VC firm, we met with the company,” says John Wroton, a commercial loan officer for Comerica in Durham. “We’re very excited about the company and the potential for getting into this relationship. Based on the projections for 24 months, the amount made sense based on what we’re looking to do.”
Raleigh-based Trinity is a provider of integrated embedded software solutions for packet telephony equipment manufacturers. Comerica says the funds will be used for a credit facility to provide money to purchase equipment and software on a two-year term.
“Comerica has lenders in technology centers like the Research Triangle so we can become familiar with the financial needs of local companies such as Trinity Convergence,” April Young, senior vice president and managing director of Comerica’s Mid-Atlantic Technology and Life Sciences Division, said in a statement. “Comerica is committed to working with venture-backed technology and life sciences companies of all sizes, providing them with both credit facilities and typical banking services.”
Trinity Convergence designs, develops and markets integrated embedded packet voice and fax software for telecommunications equipment suppliers. The company’s staff operates from both its Raleigh headquarters and its research and development center Cambridge, England.
“Comerica provides Trinity with the resources of a large bank but also the personal service we expect from local bankers,” Jeff Critser, president and chief executive officer of Trinity, said in a statement. “Trinity is quickly gaining market traction based on our unique, integrated approach to packet telephony system-level software. Comerica’s support will enable us to continue executing against our business plan.”
From 19 offices located across the United States, Comerica’s Technology and Life Sciences Division serves all major technology centers. Comerica is among the 20 largest banking companies in the nation, with $50 billion in assets.
Trinity Convergence: www.trinityconvergence.com