Runway Growth Finance Corp. Provides Fourth Quarter 2022 Portfolio Update
10 Janvier 2023 - 2:30PM
Runway Growth Finance Corp. (“Runway Growth”) (Nasdaq: RWAY), a
leading provider of flexible capital solutions to late- and
growth-stage companies seeking an alternative to raising equity,
today provided an operational and portfolio update for the fourth
quarter ended December 31, 2022.
“Runway Growth capitalized on its strong
momentum in the venture lending space, completing twelve
investments in new and existing portfolio companies, and delivering
record fourth quarter and full year originations,” said David
Spreng, Founder and CEO of Runway Growth. “Our team’s disciplined
execution in constructing a high-quality portfolio with
industry-leading credit quality has Runway Growth well positioned
for the year ahead regardless of market conditions. We continue to
focus on deploying leverage to enhance long-term shareholder value,
embracing companies that seek venture debt to generate growth.
Despite a challenging macroeconomic backdrop, our team remains
confident in its weather-proof platform and committed to delivering
flexible financing solutions to high-quality, innovative
companies.”
Runway Growth’s net originations totaled $222.6
million in the fourth quarter.
Originations
In the fourth quarter of 2022, Runway Growth
funded 12 investments: six investments in new portfolio companies,
and six new investments in existing portfolio companies. These
include:
- Completion of a
new $60 million senior secured, first-lien term loan commitment to
Brivo Systems, LLC (“Brivo”), funding $44 million at close. Brivo
is an access control company that provides a comprehensive,
cloud-based digital platform which improves security, tenant
experience, owner economics and data insights for large enterprise,
commercial and multifamily properties;
- Completion of a
new $80 million senior secured, first-lien term loan commitment to
Extensiv (formerly known as “3PL Central”), funding $65 million at
close. Extensiv is a cloud-based software company providing
warehouse, inventory, and order management solutions to third-party
logistics firms and brands;
- Completion of a
new $45 million senior secured, first-lien term loan commitment to
Nalu Medical, Inc. (“Nalu”), funding $20 million at close. Nalu is
a commercial-stage medical device company that has developed a
neuromodulation device used to provide relief to patients suffering
from chronic pain;
- Completion of a
new $12 million senior secured, first-lien term loan commitment to
Madison Reed, Inc. (“Madison Reed”), funding $9.6 million at close.
Madison Reed is a digitally enabled prestige hair color company
predominantly focused on women;
- Completion of a
new $65 million senior secured, first-lien term loan commitment to
an existing portfolio company, funding $25 million at close, which
refinanced and upsized the company’s existing $35 million senior
term loan. The company is a clinical-stage healthcare company
dedicated to patients with chronic autoimmune diseases;
- Completion of a
new $40 million senior secured, first-lien term loan commitment to
a new portfolio company that is an online learning platform
offering educational videos with a focus on creative learning,
encompassing categories such as art/animation, design,
illustration, photography, filmmaking, and writing; funding $25
million at close;
- Completion of a
new $25 million senior secured, first-lien term loan commitment to
Vesta Payment Solutions, Inc. (“Vesta”), funding $25 million at
close. Vesta is a fraud management company that provides an
instant, transaction guarantee platform for card-not-present
payments (payments where the customer is not face-to-face with the
merchant, i.e., payment via web and mobile apps);
- Completion of
$15 million follow-on investments in three additional advances to
existing portfolio company Allurion Technologies, Inc.
(“Allurion”). Allurion was founded in 2009 with one mission, to end
obesity. The Allurion program combines medical, digital, and
nutritional approaches and engages an entire team to jumpstart
weight loss and form lifelong healthy habits; and
- Completion of $4
million follow-on investments through two additional advances to
existing portfolio company Epic IO Technologies, Inc. (“Epic IO”).
Founded in 2001 and located in Fort Mill, South Carolina, EPIC IO
is the global technology holding company for IntelliSite and Broad
Sky Networks. The company is focused on wireless connectivity and
solutions powered by artificial intelligence (AI) and Internet of
Things (IoT) that seek to make its customers safer, smarter and
more connected.
Liquidity Events
During the fourth quarter ended December 31,
2022, Runway Growth experienced one liquidity event totaling $10
million. In conjunction with its refinancing and upsize, an
existing portfolio company prepaid its outstanding principal
balance of $10 million.
Subsequent to December 31, 2022, Runway Growth
experienced an additional liquidity event totaling $10 million. In
conjunction with a loan amendment to TRACON Pharmaceuticals, Inc.
(“Tracon”) (NASDAQ: TCON) finalized on December 22, 2022, Tracon
repaid its senior secured term loan of $10 million on January 3,
2023.
Portfolio Construction and
Management
Runway Growth delivered its fourth consecutive
quarter of record originations through deploying leverage and
partnering with the highest quality late-stage companies to drive
portfolio growth. The company’s credit-first philosophy and
weatherproof platform are designed to navigate all operating
environments, which gives management confidence in Runway Growth’s
near and long-term outlook.
As of December 31, 2022, the Runway Growth
portfolio included 56 debt investments and 54 equity investments
(which includes warrants received in conjunction with debt
investments) in 49 portfolio companies. This consisted of late and
growth-stage businesses in the technology, life sciences,
healthcare, information services, and select consumer services and
products industries. Runway Growth’s normal business operations
include ongoing communication with portfolio companies, and the
company is focused on regular touch points given the current
dynamic market landscape.
In summary, Runway Growth is expanding its
portfolio, focusing on stable yields and attractive returns from
debt investments. The Company’s borrowers are carefully navigating
market uncertainty in the year ahead and the Company’s team remains
committed to delivering flexible financing solutions.
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
advisor 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, including the impact of COVID-19 and
related changes in base interest rates and significant market
volatility on our business, our portfolio companies, our industry
and the global economy. 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.
IR Contacts:
Stefan Norbom, Prosek Partners, snorbom@prosek.com
Thomas B. Raterman, Chief Financial Officer and Chief Operating
Officer, tr@runwaygrowth.com
TRACON Pharmaceuticals (NASDAQ:TCON)
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