RWAY Closes ﹩46.3 Million Notes, Sets Redemption
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Runway Growth Finance Corp. (Nasdaq: RWAY) closed ﹩46.3 million of 7.75% unsecured notes due October 1, 2031, on October 1, 2026, and formally set the redemption of its higher-cost 9.00% notes.
The completed offering was ﹩1.3 million larger than the ﹩45.0 million base amount announced on September 25, reflecting a partial exercise of the underwriters’ overallotment option. The new notes pay interest quarterly beginning December 1 and rank equally with Runway’s other unsecured, unsubordinated debt.
Runway notified the trustee that it will redeem all approximately ﹩32.97 million of 9.00% SWK senior notes due January 31, 2027. The redemption is expected on November 3 at ﹩25 per note plus accrued interest. Remaining proceeds are intended to repay credit-facility debt and for general corporate purposes.
Replacing 9.00% debt with 7.75% debt lowers the stated annual coupon on the redeemed principal by 1.25 percentage points, before offering expenses and other capital-structure effects. It also moves that portion of financing from an early-2027 maturity to 2031, reducing near-term refinancing pressure.
The transaction supports liquidity and may lower interest expense, but it does not itself generate investment income. Dividend support will still depend on Runway’s net investment income, portfolio credit performance, leverage, and the use of remaining proceeds. The next evidence to watch is completion of the redemption and the effect on subsequent interest expense and net investment income.
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This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.