Runway Growth Finance Corp. (RWAY), a business development company with a market capitalization of $315 million, is pursuing a strategic acquisition of SWK Holdings Corporation (SWKH), with an anticipated closing in late March 2026. This move is expected to significantly enhance RWAY's portfolio and broaden its reach within the healthcare sector, aligning with its long-term growth objectives.
In a parallel effort to optimize its financial structure, RWAY is proactively managing its debt profile. The company is issuing $100 million in new 7.25% notes, identified as RWAYI, which are slated to mature in 2031. The funds generated from this issuance are specifically allocated to retire existing, more expensive debt obligations. This includes the complete redemption of the 8.00% RWAYZ notes and a partial redemption of the 7.50% RWAYL notes, demonstrating a clear strategy to reduce overall borrowing costs and improve financial efficiency.
These strategic financial maneuvers underscore RWAY's commitment to sustainable growth and operational excellence. By expanding its market presence through acquisitions and meticulously managing its capital expenses, RWAY is not only enhancing shareholder value but also reinforcing its market position. The strong asset coverage ratio of 209%, significantly exceeding the 150% regulatory requirement, further solidifies its financial stability and potential for future expansion, positioning RWAY as a robust entity in the business development landscape.
