Runway Growth Finance Corp. Prices $70 million 4.25% Series 2021A Senior Notes Due 2026

Rhea-AI Summary

Runway Growth Finance Corp. (Nasdaq: RWAY) announced a private placement of $70 million in 4.25% Senior Notes due 2026. The first closing of $20 million is anticipated on December 10, 2021, followed by a second closing of $50 million around February 10, 2022. Proceeds may be used to repay debt, invest in companies, or for general corporate purposes. The notes are not registered under the Securities Act and will be offered only to accredited institutional investors. Runway Growth specializes in providing flexible capital solutions to late-stage and growth companies.

Positive

• Successful pricing of $70 million in Senior Notes may strengthen liquidity.
• Interest rate of 4.25% could attract institutional investors seeking strong yields.

Negative

• Notes are not registered under the Securities Act, limiting their marketability.
• Relying on debt financing could increase financial risk, especially amid market volatility.

WOODSIDE, Calif., Nov. 18, 2021 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth”), an externally managed business development company, today announced that it has priced a private placement of $70 million in aggregate principal amount of 4.25% Series 2021A Senior Notes due 2026 (the “ 2026 Senior Notes”). The 2026 Senior Notes have been 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 are expected to be delivered and paid for at two closings (each a “Closing”). The first Closing, in respect of $20 million aggregate principal amount of 2026 Senior Notes, is expected to occur on December 10, 2021 and the second Closing, in respect of $50 million in aggregate principal amount of 2026 Senior Notes, is expected to occur on or about February 10, 2022. Each Closing is subject to customary closing conditions.

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 may 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 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. Any offers of the 2026 Senior Notes will be made only by means of a private offering memorandum. 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, tr@runwaygrowth.com

FAQ

What is the purpose of Runway Growth's $70 million private placement?

The proceeds will be used to repay debt, invest in growth companies, and for general corporate purposes.

What is the interest rate and maturity date of the Senior Notes issued by RWAY?

The Senior Notes bear an interest rate of 4.25% per year and will mature on December 10, 2026.

When will the closings for the Senior Notes take place?

The first closing is expected on December 10, 2021, and the second on or about February 10, 2022.

Who can invest in the Senior Notes offered by Runway Growth?

The Senior Notes are offered only to institutional accredited investors.

What risks are associated with the Senior Notes from RWAY?

The notes are unregistered, which limits their resale and may increase financial risk due to reliance on debt.