Runway Growth Announces Expansion of Revolving Credit Facility

Rhea-AI Summary

Runway Growth Finance Corp. (Nasdaq: RWAY) has expanded its revolving credit facility, increasing total commitments to $500 million from KeyBank Specialty Finance, CIBC Bank USA, and other lenders. The credit facility, which has a maturity date of April 20, 2026, allows borrowings with interest based on the Adjusted Term SOFR plus a margin of 2.95% to 3.35% depending on the company's leverage. CFO Tom Raterman emphasized that this expansion enhances liquidity and positions the company to meet demand for creative financing solutions, maintaining over $200 million in available liquidity. KeyBank expressed its commitment to supporting Runway Growth's mission in the venture debt market.

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• Expansion of revolving credit facility to $500 million enhances liquidity.
• Company maintains over $200 million in available liquidity for growth initiatives.

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• None.

WOODSIDE, Calif., April 18, 2023 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth” or the “Company”), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today announced the expansion of its existing revolving credit facility with an increase in aggregate commitments to $500 million from KeyBank Specialty Finance, CIBC Bank USA and other lenders.

Borrowings under the Credit Facility bear interest on a per annum basis equal to the Adjusted Term Secured Overnight Financing Rate ("SOFR") plus an applicable margin rate that ranges from 2.95% to 3.35% per annum depending on the Company's leverage ratio and number of eligible loans in the collateral pool. The lending syndicate is comprised of KeyBank National Association and CIBC Bank USA as Co-Lead Arrangers, and includes MUFG Union Bank, N.A. and U.S. Bank National Association. The maturity date under the Credit Facility is April 20, 2026.

“We are pleased with the ongoing support from our lending partners, which enhances Runway’s balance sheet to capitalize on robust demand for creative financing solutions,” stated Tom Raterman, CFO and COO of Runway Growth. “This credit facility expansion strengthens our liquidity, and strategically positions Runway to navigate any environment that lies ahead. With more than $200 million of available liquidity, our team remains focused on disciplined execution while deploying capital at favorable terms.”

“KeyBank is proud to have led the revolving credit facility for Runway Growth, given its reputation as a trusted partner in the venture debt market. We look forward to the continued partnership with management as they execute against their mission to support passionate entrepreneurs in building great businesses,” said Rian Emmett, Group Head of KeyBank Specialty Finance Lending.

About Runway Growth Finance Corp.
Runway Growth is a growing specialty finance company focused on providing flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity. Runway Growth is a closed-end investment fund that has elected to be regulated as a business development company under the Investment Company Act of 1940. Runway Growth is externally managed by Runway Growth Capital LLC, an established registered investment advisor that was formed in 2015 and led by industry veteran David Spreng. For more information, please visit www.runwaygrowth.com.

Forward-Looking Statements
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties, including the impact of COVID-19 and related changes in base interest rates and significant market volatility on our business, our portfolio companies, our industry and the global economy. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Runway Growth’s filings with the Securities and Exchange Commission. Runway Growth undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

IR Contacts:
Stefan Norbom, Prosek Partners, snorbom@prosek.com
Thomas B. Raterman, Chief Financial Officer and Chief Operating Officer, tr@runwaygrowth.com

FAQ

What is the significance of Runway Growth's credit facility expansion on April 18, 2023?

The expansion increases total commitments to $500 million, enhancing the company's liquidity and ability to respond to market demands.

What are the interest rates associated with Runway Growth's new credit facility?

The interest on borrowings under the credit facility ranges from 2.95% to 3.35%, depending on the company's leverage.

When does the new credit facility for Runway Growth mature?

The maturity date for the expanded credit facility is April 20, 2026.

How does the credit facility expansion impact Runway Growth's financial position?

It strengthens Runway Growth's balance sheet, allowing the company to capitalize on financing opportunities and maintain significant liquidity.

Who are the lenders involved in Runway Growth's credit facility?

The facility is supported by KeyBank Specialty Finance, CIBC Bank USA, MUFG Union Bank, and U.S. Bank National Association.