Runway Growth Launches Unsecured Notes Offering to Refinance 9% Debt
RWAY sits 30% above its 52-week low of $5.19.
Summary
Runway Growth Finance Corp. has priced an underwritten offering of $45 million of 7.75% unsecured notes due 2031 at par, with net proceeds of $43.65 million and an over-allotment option of up to $6.75 million. The company intends to use net proceeds to repay outstanding indebtedness, including redeeming all or part of its 9.00% Senior Notes due January 31, 2027, of which approximately $33.0 million is outstanding. This refinancing follows a period of insider buying and a recent credit facility amendment that reduced commitments. The offering could lower interest expense if new notes price below 9%, but dilution and market conditions remain key variables. The notes are expected to list on Nasdaq within 30 days of issuance if approved.
Updated with an SEC FWP filing · What changed
Updates
· SEC FWP — Runway Growth priced the offering at $45 million of 7.75% notes due 2031 at par, with net proceeds of $43.65 million and an over-allotment option of up to $6.75 million.
At the time of this announcement, RWAY was trading at $6.74 on NASDAQ in the Finance sector, with a market capitalization of approximately $282.5M. The 52-week trading range was $5.19 to $10.50. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.