Runway Growth Finance Presents Fourth Quarter 2021 Portfolio Update | News
– Completed six investments in new and existing holding companies – Achieved record quarterly and annual loan origination volumes of $ 216 million and $ 563 million, respectively – Total loan commitments and funded investments reached 1 , $ 4 billion and $ 1.2 billion since the inception
WOODSIDE, Calif., January 6, 2022 (GLOBE NEWSWIRE) – Runway Growth Finance Corp. (“Runway Growth”) (Nasdaq: RWAY), a leading provider of flexible capital solutions for developing and growing companies looking for an alternative to raising equity, announced today hui an update of the portfolio for the fourth quarter ended December 31, 2021.
âRunway achieved record fourth quarter and full year builds, supported by our focus on credit quality while supporting expansion initiatives of high growth companies and talented entrepreneurs,â said David Spreng, founder and CEO of Runway Growth. âOur investment in our team is paying off and we are capitalizing on favorable geographic and industrial winds. In addition, we have started our long term initiative of prudently deploying additional leverage during the quarter. We put the capital to work, using the proceeds from the IPO, the initial proceeds from our recent private placement, and using our bank lines to fund new investments. Runway Growth is enjoying strong momentum with a strong pipeline entering 2022, and we look forward to continuing to execute our strategy of long-term growth and delivering shareholder value. “
In the fourth quarter of 2021, Runway Growth funded six investments: three investments in new holding companies and three new investments in existing holding companies. These include:
Completion of a new $ 75 million senior secured term loan commitment with VTX Holdings, LLC dba VertexOne (âVertexOneâ), funding $ 75 million at closing. Founded over 20 years ago and headquartered in Richardson, Texas, VertexOne is a leading provider of Software as a Service (âSaaSâ) applications and services for critical business processes in public services. Services include system implementation, application, maintenance and support, software development, analytics, mobile workforce data management systems and implementation systems. client work. The company serves more than 200 gas, electricity and water utility customers; entering into a new $ 30 million secured term loan commitment to Epic IO Technologies, Inc. (âEpic IOâ), funding $ 19 million at closing. 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 focuses on wireless connectivity and solutions powered by artificial intelligence (AI) and the Internet of things (IoT), which aim to make its customers safer, smarter and more connected Labs, Inc. ( âDejeroâ), funding $ 13 million at the close. Founded in 2008 and located in Waterloo, Ontario, Dejero provides reliable connectivity anywhere by aggregating a variety of connectivity paths including LTE and 5G cellular, satellite and broadband into a virtual “network of networks” to deliver enhanced reliability. , extended coverage and greater bandwidth using cloud-based technology; Provide a new $ 50 million senior secured term loan commitment to existing holding company, INRIX Inc. (“INRIX ), Funding $ 40 million at closing, which refinanced and increased the company’s previous $ 30 million guaranteed term loan. INRIX is a global leader in connected car services and transportation analysis. Leveraging big data and the cloud, INRIX provides comprehensive services and solutions to help people, cities and businesses move forward; Provide a new $ 40 million secured term loan commitment to the existing holding company, Allurion Technologies, Inc. (âAllurionâ), $ 25 million closing financing, which refinanced and increased the Company’s previous senior secured term loan of $ 20 million. 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 accelerate weight loss and adopt healthy habits throughout life; and Providing $ 8.1 million in new senior secured term loans and $ 8.8 million to existing holding company Marley Spoon in support of continued organic growth and their acquisition of the company Australian Ready-to-Reheat Chefgood Pty Ltd.
During the fourth quarter ended December 31, 2021, Runway Growth experienced the following liquidity events totaling $ 103.2 million:
Credit Sesame, Inc. (“Credit Sesame”). During the quarter, Credit Sesame prepaid its outstanding principal balance of $ 43.2 million, including interest and associated fees. Runway Growth continues to hold equity warrants in Credit Sesame; Ouster, Inc. (âOusterâ). During the quarter, Runway Growth liquidated its holdings in Ouster common stock for total proceeds of $ 8.8 million; Echo 360 Holdings, Inc. (âEcho 360â). During the quarter, Runway Growth received gross proceeds of $ 0.3 million in conjunction with the cancellation of its purchase warrant for the common shares of Echo 360; as part of its refinancing and increase, INRIX prepaid its outstanding principal balance of $ 30.7 million, including interest and associated costs; andIn conjunction with its refinancing and expansion, Allurion prepaid its outstanding principal balance of $ 20.2 million, including interest and associated costs.
About Runway Growth Finance Corp.
Runway Growth is a growing specialty finance company focused on providing flexible capital solutions to developing and growing companies looking for an alternative to equity raising. Runway Growth is a closed-end investment fund which elected to be regulated as a business development company under the Investment Companies Act of 1940. Runway Growth is managed externally by Runway Growth Capital LLC , an established investment advisor who was formed in 2015 and led by industry veteran David Spreng. For more information, please visit www.runwaygrowth.com.
Statements included in this document may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical fact included in this press release may constitute forward-looking statements and are not statements. guarantees 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 forward-looking statements due to a number of factors, including those described from time to time in documents filed by Runway Growth with the Securities and Exchange Commission. Runway Growth does not undertake to update any forward-looking statements contained in this document. All forward-looking statements speak only as of the date of this press release.
Alex Straus, Prosek Partners, [email protected]
Thomas B. Raterman, Chief Financial Officer, [email protected]
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