Runway Growth Initiates Unsecured Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Newsfilter
- Bond Offering Announcement: Runway Growth Finance Corp. has announced the initiation of an unsecured notes offering, which is expected to be listed on the Nasdaq Global Select Market within 30 days, potentially providing the company with flexible capital solutions to support its growth strategy.
- Debt Repayment Purpose: The net proceeds from this offering will be used to repay $51.75 million of 8.00% Notes due 2027, aimed at reducing financial costs and optimizing the capital structure, thereby enhancing the company's financial flexibility.
- Acquisition Financing: The company also plans to utilize funds from the bond issuance to finance its acquisition of SWK Holdings Corporation, further expanding its market share and strengthening its competitive position.
- Underwriting Team: A consortium of reputable financial institutions, including Oppenheimer & Co. Inc. and B. Riley Securities, will act as joint book-running managers for this offering, reflecting market confidence and support for the bond issuance.
Analyst Views on RWAY
Wall Street analysts forecast RWAY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RWAY is 10.57 USD with a low forecast of 9.00 USD and a high forecast of 12.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
2 Buy
5 Hold
0 Sell
Moderate Buy
Current: 9.340
Low
9.00
Averages
10.57
High
12.00
Current: 9.340
Low
9.00
Averages
10.57
High
12.00
About RWAY
Runway Growth Finance Corp. is a specialty finance company. The Company is focused on providing senior secured loans to high growth-potential companies in technology, healthcare, business services, financial services, select consumer services and products and other high-growth industries. Its investment objective is to maximize its total return to its stockholders primarily through current income on the Company's loan portfolio and secondarily through capital gain (loss) on its warrants and other equity positions. The Company invests in senior secured term loans and other senior debt obligations, and it also invests in second lien loans issued by high growth-potential companies. The Company originates its investments through two strategies: Sponsored Growth Lending and Non-Sponsored Growth Lending. It also invests in secured loans, and acquires equity securities as well, including warrants. The Company is externally managed by Runway Growth Capital LLC (RGC).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
