Runway Growth Finance's BDC Bond, 7.1% Yield

February 16, 2026 - 09:30

Runway Growth Finance Corp. has taken decisive steps to strengthen its portfolio and capital structure. The business development company is progressing toward the final acquisition of SWKH, a strategic move expected to close by March 2026. This acquisition will significantly increase the firm's exposure to the healthcare sector, a market known for its resilience.

Concurrently, Runway has successfully issued new senior unsecured notes carrying a 7.25% interest rate. The primary purpose of this offering is to refinance existing, more expensive debt. This strategic refinancing is anticipated to reduce overall borrowing costs and improve interest coverage ratios, thereby enhancing financial flexibility for future investments.

The dual announcements highlight a focused strategy: capitalizing on growth in the healthcare industry while proactively managing the cost of capital. By swapping higher-yield debt for the newly issued notes, the company aims to create a more efficient balance sheet. This approach is designed to support sustainable long-term returns for its shareholders, with the healthcare sector poised to be a central pillar of its investment strategy moving forward. The company's actions reflect a calculated effort to optimize its financial position in a evolving economic landscape.