Runway Growth Finance Corp. announced a revised credit agreement with KeyBank and expanded its Board to three new members.
Quiver AI Summary
Runway Growth Finance Corp. announced two significant operational updates on March 21, 2025. The company has amended and extended its credit agreement with KeyBank, providing it with greater financial flexibility by allowing expanded financing solutions for borrowers. Additionally, the Board of Directors has been expanded from five to eight members, with new appointments enhancing governance and industry expertise. CEO David Spreng highlighted that these developments strengthen the company's balance sheet and governance and are aimed at optimizing its portfolio to generate attractive returns for shareholders. The company focuses on flexible capital solutions for late- and growth-stage companies, operating as a business development company.
Potential Positives
- The amendment and extension of the credit agreement with KeyBank provides Runway Growth with enhanced financial flexibility and the ability to offer a broader range of financing solutions to its borrowers.
- The expansion of the Board of Directors from five to eight members improves governance and incorporates additional industry expertise, which can positively impact strategic decisions.
- The appointments of new board members with key public company experience enhance the company’s leadership and oversight capabilities.
- David Spreng, the CEO, expresses confidence that these operational milestones will lead to strong performance and attractive returns for stockholders, indicating a positive outlook for the company's future.
Potential Negatives
- The amendment of the credit agreement suggests potential challenges in the company's existing financial structures, leading to a need for revisions to maintain financial flexibility.
- The expansion of the Board may be seen as a reaction to previous governance challenges or the need to strengthen oversight after the merger, raising questions about the effectiveness of the existing Board composition.
- The reference to the forward-looking statements and associated risks implies that the company faces uncertainties that could affect future performance, raising concerns among investors regarding the reliability of projected returns.
FAQ
What updates were announced by Runway Growth Finance Corp.?
Runway Growth announced an amended credit agreement and an expansion of its Board of Directors from five to eight members.
Who led the revised credit agreement for Runway Growth?
The revised credit agreement was led by KeyBank National Association and included participation from fourteen lenders.
What are the benefits of the amended credit agreement?
The amended credit agreement extends the maturity date and allows for expanded financing options for borrowers, enhancing financial flexibility.
Who were the new Board members appointed?
Ted Goldthorpe, Alexander Duka, and Robert Warshauer were appointed as new Board members, effective March 21, 2025.
What is the main focus of Runway Growth Finance Corp.?
Runway Growth Finance Corp. focuses on providing flexible capital solutions to late- and growth-stage companies as an alternative to raising equity.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$RWAY Insider Trading Activity
$RWAY insiders have traded $RWAY stock on the open market 7 times in the past 6 months. Of those trades, 7 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $RWAY stock by insiders over the last 6 months:
- R DAVID SPRENG (President and CEO) has made 4 purchases buying 30,546 shares for an estimated $309,609 and 0 sales.
- THOMAS B. RATERMAN (See Remarks) has made 3 purchases buying 29,546 shares for an estimated $299,269 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$RWAY Hedge Fund Activity
We have seen 55 institutional investors add shares of $RWAY stock to their portfolio, and 30 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- INVESCO LTD. removed 1,179,209 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $12,924,130
- MGO ONE SEVEN LLC removed 552,227 shares (-93.3%) from their portfolio in Q4 2024, for an estimated $6,052,407
- BULLDOG INVESTORS, LLP added 472,799 shares (+143.5%) to their portfolio in Q4 2024, for an estimated $5,181,877
- ALPINE GLOBAL MANAGEMENT, LLC added 398,547 shares (+76.3%) to their portfolio in Q4 2024, for an estimated $4,368,075
- MILLENNIUM MANAGEMENT LLC added 267,220 shares (+151.9%) to their portfolio in Q4 2024, for an estimated $2,928,731
- JPMORGAN CHASE & CO removed 259,739 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $2,672,714
- FRANKLIN RESOURCES INC added 206,309 shares (+inf%) to their portfolio in Q4 2024, for an estimated $2,261,146
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
MENLO PARK, Calif., March 21, 2025 (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 provided two operational updates. On March 18, 2025, the Company amended and extended its credit agreement with KeyBank National Association (“KeyBank”). In addition, the Board of Directors (the “Board”) has also expanded the size of the Board from five members to eight members, as previously disclosed.
“These achievements strengthen our balance sheet and enhance our governance profile on the heels of Runway Growth Capital’s completed merger with BC Partners Credit,” said David Spreng, Founder and CEO of Runway Growth. “Our appointments add industry expertise and bolster our Board with key public company experience. Further, our revised credit agreement provides Runway Growth with additional financial flexibility as we seek to optimize our portfolio through an expanded suite of financing solutions for current and prospective borrowers. We believe these operational milestones will lead to strong performance and, in turn, generate attractive returns for our stockholders in the months and years to come.”
Credit Agreement
The amended credit agreement extends the maturity date and revolving period for the Company’s credit facility. Additionally, the revised agreement permits expanded financing solutions that Runway Growth can offer its borrowers. These include but are not limited to: cash flow based loans, asset based loans and recurring revenue loans. The facility is led by KeyBank and includes fourteen lenders in total.
Board Refreshment
On March 13, 2025, in connection with the expanded size of the Board, the Board appointed the following individuals to serve on the Board, effective March 21, 2025:
Ted Goldthorpe was appointed to the role of Chairman of the Board and will serve as an interested Class II director until the Company's 2027 annual meeting of stockholders.
Alexander Duka was appointed to serve as an independent Class I director until the Company's 2026 annual meeting of stockholders.
Robert Warshauer was appointed to serve as an independent Class III director until the Company's 2026 annual meeting of stockholders.
Additionally, in the past year, both Catherine Frey and Jennifer Kwon Chou were appointed to the Board of Directors as independent directors, in connection with previously disclosed resignations. Ms. Frey’s appointment took effect on January 23, 2025, and Ms. Chou’s appointment will take effect on March 21, 2025. More information regarding the recent Board appointees is available on the
Company’s website
in the “Financials & Filings” section.
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 adviser 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. 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.
Important Disclosures
Strategies described involve special risks that should be evaluated carefully before a decision is made to invest. Not all of the risks and other significant aspects of these strategies are discussed herein. Please see a more detailed discussion of these risk factors and other related risks in the Company’s most recent annual report on Form 10-K in the section entitled “Risk Factors”, which may be obtained on the Company’s website,
www.runwaygrowth.com
, or the SEC’s website,
www.sec.gov
.
IR Contacts:
Taylor Donahue, Prosek Partners,
rway@prosek.com
Thomas B. Raterman, Chief Financial Officer and Chief Operating Officer,
tr@runwaygrowth.com
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
