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Runway Growth Finance (RWAY) investor relations material
Runway Growth Finance M&A Announcement summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Deal rationale and strategic fit
Increases healthcare and life sciences exposure from 14% to 31% of the total loan portfolio post-transaction.
Accelerates portfolio diversification and scale, leveraging SWK's expertise in minimally dilutive financing for commercial-stage healthcare companies.
Adds significant scale and enhances investment and deal sourcing capabilities by integrating SWK's specialized teams.
Positions the combined entity to execute both organic and inorganic growth strategies, supported by a comprehensive credit platform and expanded team.
Provides a repeatable, non-dilutive blueprint for future M&A-driven growth.
Financial terms and conditions
NAV-for-NAV merger structured as a tax-free reorganization, with an estimated purchase price of ~$220 million based on SWK's June 30, 2025 financials.
Consideration includes ~$145M in cash, $75.5M in shares valued at closing NAV/share, and an additional $9M cash payment from the external adviser for SWK stockholders.
Final purchase price determined by NAV calculations 48 hours prior to closing; anticipated closing in late Q4-2025 or early Q1-2026.
Synergies and expected cost savings
Expected to be accretive to net investment income (NII) by mid single digits in the first full quarter post-close, driven by portfolio expansion and operational efficiency.
Enhanced scale expected to lower risk profile, reduce funding costs, and improve access to credit markets.
Anticipated improvements in dividend coverage, ROE, and leverage ratio.
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