Runway Growth Finance Provides Fourth Quarter 2021 Portfolio Update
Runway Growth Finance Corp. (RWAY) reported significant achievements in Q4 2021, recording a loan origination volume of $216 million for the quarter and $563 million for the year. Total loan commitments reached $1.4 billion with $1.2 billion funded since inception. The company completed six investments, including major loans to VertexOne, Epic IO, and Dejero Labs. Additionally, liquidity events totaled $103.2 million, driven by prepayments from Credit Sesame and refinancings from INRIX and Allurion, highlighting successful capital deployment and growth strategies.
- Record quarterly loan origination of $216 million and annual origination of $563 million.
- Total loan commitments increased to $1.4 billion since inception.
- Completed six significant investments in new and existing portfolio companies.
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- Completed Six Investments in New and Existing Portfolio Companies
- Achieves record quarterly and annual loan origination volume of
- Total Loan Commitments and Funded Investments Grow To
WOODSIDE, Calif., Jan. 06, 2022 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (“Runway Growth”) (Nasdaq: RWAY), a leading provider of flexible capital solutions to late-stage and growth companies seeking an alternative to raising equity, today announced a portfolio update for the fourth quarter ended December 31, 2021.
“Runway delivered record fourth quarter and full-year originations underpinned by our focus on credit quality while supporting the expansion initiatives of high-growth businesses and talented entrepreneurs,” said David Spreng, Founder and CEO of Runway Growth. “Our investment in our team is paying off and we are capitalizing on geographic and industry tailwinds. Additionally, we began our long-term initiative of prudently deploying additional leverage in the quarter. We put capital to work, utilizing IPO proceeds, initial proceeds from our recent debt private placement, and drawing upon our bank lines to fund new investments. Runway Growth has strong momentum with a robust pipeline entering 2022, and we look forward to continuing to execute our long-term growth strategy and driving shareholder value.”
Originations
In the fourth quarter of 2021, Runway Growth funded six investments: three investments in new portfolio companies, and three new investments in existing portfolio companies. These include:
- Completion of a new
$75 million senior secured term loan commitment to VTX Holdings, LLC dba VertexOne (“VertexOne”), funding$75 million at close. Founded more than 20 years ago and based in Richardson, Texas, VertexOne is a leading provider of software as a service (“SaaS”) applications and services for the critical businesses processes of utilities. The services include system implementation, application, maintenance and support, software development, analytics, mobile work force data management systems, and customer implementation systems. The company serves more than 200 gas, electric, and water utility customers; - Completion of a new
$30 million senior secured term loan commitment to Epic IO Technologies, Inc. (“Epic IO”), funding$19 million at close. Founded in 2001 and located in Fort Mill, South Carolina, EPIC IO is the global technology holding company for IntelliSite and Broad Sky Networks. The company is focused on wireless connectivity and solutions powered by artificial intelligence (AI) and Internet of Things (IoT), that seek to make its customers safer, smarter and more connected; - Completion of a new
$13 million junior secured term loan commitment to Dejero Labs, Inc. (“Dejero”), funding$13 million at close. Founded in 2008 and located in Waterloo, Ontario, Dejero provides reliable connectivity anywhere by aggregating diverse connectivity paths including LTE and 5G cellular, satellite and broadband into a virtual ‘network of networks’ to deliver enhanced reliability, expanded coverage, and greater bandwidth using cloud-based technology; - Providing a new
$50 million senior secured term loan commitment to existing portfolio company, INRIX Inc. (“INRIX”), funding$40 million at close, which refinanced and upsized the company’s previous$30 million senior secured term loan. INRIX is a global leader in connected car services and transportation analytics. Leveraging big data and the cloud, INRIX delivers comprehensive services and solutions to help move people, cities and businesses forward; - Providing a new
$40 million senior secured term loan commitment to existing portfolio company, Allurion Technologies, Inc. (“Allurion”), funding$25 million at close, which refinanced and upsized the company’s previous$20 million senior secured term loan. Allurion was founded in 2009 with one mission: end obesity. The Allurion Program combines medical, digital, and nutritional approaches and engages an entire team to jumpstart weight loss and form lifelong healthy habits; and - Providing
$8.1 million of new and$8.8 million in follow-on senior secured term loans to existing portfolio company Marley Spoon in support of continued organic growth and their acquisition of Australian ready-to-heat meal company Chefgood Pty Ltd.
Liquidity Events
During the fourth quarter ended December 31, 2021, Runway Growth experienced the following liquidity events totaling
- Credit Sesame, Inc. (“Credit Sesame”). During the quarter, Credit Sesame prepaid its outstanding principal balance of
$43.2 million including interest and associated fees. Runway Growth continues to hold equity warrants in Credit Sesame; - Ouster, Inc. (“Ouster”). During the quarter, Runway Growth liquidated its holdings in Ouster’s common stock for total proceeds of
$8.8 million ; - Echo 360 Holdings, Inc. (“Echo 360”). During the quarter, Runway Growth received gross proceeds of
$0.3 million in conjunction with the cancellation of its warrant for common shares of Echo 360; - In conjunction with its refinancing and upsize, INRIX prepaid its outstanding principal balance of
$30.7 million including interest and associated fees; and - In conjunction with its refinancing and upsize, Allurion prepaid its outstanding principal balance of
$20.2 million including interest and associated fees.
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 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:
Alex Straus, Prosek Partners, astraus@prosek.com
Thomas B. Raterman, Chief Financial Officer, tr@runwaygrowth.com
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