Runway Growth Finance Corp. Announces Second Closing of Private Placement of 4.25% Series 2021A Senior Notes Due 2026

Rhea-AI Summary

Runway Growth Finance Corp. (Nasdaq: RWAY) has successfully completed the second closing of a private placement of 4.25% Series 2021A Senior Notes due 2026, totaling $50 million, bringing the total raised to $70 million. The notes will mature on December 10, 2026, and interest is payable semiannually. The proceeds will be used to repay debt and for general corporate purposes. These notes are offered only to institutional accredited investors and have not been registered under the Securities Act.

Positive

• Raised a total of $70 million through the private placement of Senior Notes.
• The interest rate on the notes is competitive at 4.25% per year.

Negative

• Notes have not been registered under the Securities Act, limiting future marketability.
• Potential risks related to forward-looking statements involving market volatility and economic conditions.

WOODSIDE, Calif., Feb. 10, 2022 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth”), an externally managed business development company, today announced that it has completed the second closing of a private placement of 4.25% Series 2021A Senior Notes due 2026 (the “2026 Senior Notes”) pursuant to a Master Note Purchase Agreement, dated December 10, 2021. The first closing was completed for an amount of $20,000,000 on December 10, 2021 and the second closing was completed today for an amount of $50,000,000 for a total amount of $70,000,000. The second closing was subject to customary closing conditions. The 2026 Senior Notes were offered only to institutional accredited investors (as defined in Regulation D under the Securities Act of 1933, as amended (the “Securities Act”)) in reliance on Section 4(a)(2) of the Securities Act.

The 2026 Senior Notes will bear an interest rate of 4.25% per year, payable semiannually, and will mature on December 10, 2026. Runway Growth will use the net proceeds of the private placement to repay outstanding indebtedness, make investments in accordance with the Runway Growth’s investment objective and investment strategy and for other general corporate purposes.

The 2026 Senior Notes have not been and will not be registered under the Securities Act, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

This press release is neither an offer to sell nor a solicitation of an offer to buy the 2026 Senior Notes and will not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

About Runway Growth Finance Corp.

Runway Growth is a growing specialty finance company focused on providing flexible capital solutions to late-stage and growth 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 SEC. 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:

Alex Straus, Prosek Partners, astraus@prosek.com 
Thomas B. Raterman, Chief Financial Officer and Chief Operating Officer, tr@runwaygrowth.com 

FAQ

What is the significance of the second closing for RWAY?

The second closing adds $50 million to the previously raised $20 million, totaling $70 million for growth and strategic investments.

What is the interest rate of the 2026 Senior Notes issued by RWAY?

The 2026 Senior Notes have an interest rate of 4.25% per year, payable semiannually.

Who are the investors eligible to purchase RWAY's 2026 Senior Notes?

The notes are offered exclusively to institutional accredited investors as defined under Regulation D.

What will the proceeds from the Senior Notes be used for?

Proceeds will be utilized to repay existing debt, make new investments, and for general corporate purposes.

When do the 2026 Senior Notes mature?

The 2026 Senior Notes will mature on December 10, 2026.