Runway Growth Finance Corp. (NASDAQ: RWAY) saw its shares weaken early Monday. The company, a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, provided a business update in response to recent industry events concerning Silicon Valley Bank.
“We are encouraged by the decision of the Treasury, Federal Reserve, and FDIC to fully protect all SVB depositors,” said CEO David Spreng. “This action directly impacts our portfolio companies for the better. As we navigate the difficult waters ahead, management believes our focus on the latest stage companies will prove to be a differentiator in the venture debt space. Our 99% concentration in first lien loans protects our portfolio, as we are unencumbered by the complications of dealing with a senior lender. Further, our focus on first lien loans protects our investors from situations in which a second lien lender might find itself subordinated to the FDIC and precluded from taking action to preserve the value of a loan. Runway Growth will continue to prudently deploy leverage to fuel non-dilutive growth for our portfolio companies and returns for our shareholders.”
The Runway Growth management team is monitoring the venture market extremely closely. The Company does not have any deposits or loans with SVB, nor does the Company participate in any credit facilities agented by, or that include SVB as a lender.
RWAY ditched 75 cents, or 6.3%, to $11.11.
Related Stories
