MENLO PARK, Calif. - Runway Growth Finance Corp. (NASDAQ: NASDAQ:RWAY), a specialty finance company, has announced a secondary public offering of 3,750,000 shares of common stock by OCM Growth Holdings LLC. The offering, disclosed today, is being made under a registration statement previously filed with the Securities and Exchange Commission (SEC).
OCM Growth Holdings LLC, the selling stockholder, also plans to give underwriters a 30-day option to buy up to an additional 562,500 shares. The joint-lead book-running managers for this offering include Wells Fargo (NYSE:WFC) Securities, Morgan Stanley (NYSE:MS), BofA Securities, and UBS Investment Bank. Keefe, Bruyette & Woods, RBC Capital Markets, and B. Riley Securities are also serving as joint book-running managers.
Runway Growth, which provides senior secured loans to companies in various high-growth industries such as technology and healthcare, is a closed-end investment fund and operates as a business development company under the Investment Company Act of 1940. The firm is managed by Runway Growth Capital LLC, which was established in 2015.
The preliminary prospectus supplement and the accompanying base prospectus, which contain important information about Runway Growth Finance Corp. and the offering, are available and can be obtained from the managing underwriters.
Investors are encouraged to review the investment objectives, risks, charges, and expenses of the company before investing. The preliminary prospectus supplement and the accompanying prospectus are not final and are subject to change.
This offering is made solely by means of the prospectus, and the securities may not be sold, nor may offers to buy be accepted prior to the time the registration statement becomes effective. Furthermore, this press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in any state or jurisdiction where such offer, sale, or solicitation would be unlawful.
InvestingPro Insights
Runway Growth Finance Corp. (NASDAQ: RWAY) has been in the spotlight with its recent announcement of a secondary public offering. As investors consider the implications of this offering, here are some key metrics and insights from InvestingPro that may influence investment decisions:
The company currently holds a market capitalization of approximately $485.88 million, indicating its size and presence in the market. With a P/E Ratio standing at 11.8, RWAY presents itself as a potentially attractive investment based on earnings multiples. Additionally, a notable aspect for income-focused investors is RWAY’s substantial dividend yield, which as of the latest data, stands at an impressive 15.61%.
InvestingPro Tips for RWAY suggest a mixed outlook. The company has a track record of increasing its dividend for three consecutive years, highlighting its commitment to returning value to shareholders. However, investors should be aware that four analysts have revised their earnings expectations downwards for the upcoming period, which could signal caution regarding the company's near-term financial performance. Moreover, RWAY is perceived to have weak gross profit margins, a factor that could impact its overall profitability.
For those interested in further insights and metrics, there are additional InvestingPro Tips available for Runway Growth Finance Corp. These tips can provide deeper analysis and help in making a more informed investment decision. To access these valuable insights, visit https://www.investing.com/pro/RWAY and remember to use coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As of the latest update, the ex-date of RWAY's last dividend was on May 9, 2024, which is crucial for investors to note if they are looking to capture the dividend payout. The price of RWAY's stock is currently at 88.06% of its 52-week high, with a previous close at $11.85. This could indicate room for potential growth or, conversely, a need for caution if the stock is nearing a resistance level.
Investors looking to understand the full picture of Runway Growth Finance Corp.'s financial health and future prospects would benefit from the additional 20+ InvestingPro Tips available, which delve into various aspects of the company's financial standing and market performance.
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