Runway Growth Finance's BDC Bond, 7.1% Yield

Binary Tree Analytics5.59K FollowersFollow5ShareSavePlay(8min)Comment(1)SummaryRunway Growth Finance's acquisition of SWK Holdings is on track to close in late March 2026. This merger is expected to scale RWAY’s portfolio and increase its healthcare exposure.RWAY is aggressively lowering its cost of capital by issuing $100 million in new 7.25% notes, RWAYI, due 2031.The proceeds are being used to retire more expensive debt, including the full redemption of the 8.00% RWAYZ notes and a partial redemption of the 7.50% RWAYL notes.As of the most recent filings, RWAY maintains a strong asset coverage ratio of 209%, well above the 150% regulatory requirement.8vFanI/iStock via Getty Images Thesis Runway Growth Finance Corp. (RWAY) is a business development company with a $315 M market capitalization. Late last year the company announced the acquisition of SWK Holdings Corporation (SWKH): MENLO PARK, Calif., Oct. 09, 2025 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (This article was written byBinary Tree Analytics5.59K FollowersFollowWith an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.Analyst’s Disclosure: I/we have a beneficial long position in the shares of RWAYI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.