UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 27, 2020
Runway Growth Credit Fund Inc.
(Exact name of registrant as specified in its charter)
| Maryland | 000-55544 | 47-5049745 | ||
|
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 205 N. Michigan Ave., Suite 4200, Chicago, Illinois | 60601 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code: (312) 281-6270
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| None | N/A | N/A |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company þ
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 8.01. | Other Events |
On January 27, 2020, Runway Growth Credit Fund Inc. issued a press release announcing its portfolio activity for the year ended December 31, 2019. A copy of the press release is attached hereto as Exhibit 99.1.
The information disclosed under Item 8.01, including Exhibit 99.1 attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits:
| Exhibit No. | Description | |
| 99.1 | Press Release, dated January 27, 2020 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Runway Growth Credit Fund Inc. | |||
| Date: January 27, 2020 | By: | /s/ Thomas B. Raterman | |
|
Thomas B. Raterman Chief Financial Officer, Treasurer and Secretary | |||
Exhibit 99.1
Runway Growth Credit Fund Provides Full Year 2019 Portfolio Update
– Originates $203 Million Of New Loan Commitments
– Grows Total Loan Originations Since Inception To $514 Million
WOODSIDE, CA, January 27, 2020—Runway Growth Credit Fund Inc. (the “Fund” or “Runway Growth”), a leading lender of growth capital to both venture and non-venture backed companies seeking an alternative to raising equity, provided a portfolio update for the year ended December 31, 2019.
“We had a very strong year adding nine new portfolio companies in 2019,” said David Spreng, CEO. “We continue to demonstrate our ability to creatively structure loans that support company growth and meet the needs of both the entrepreneur and institutional equity holders. Our portfolio continues to grow in an environment where we are being very selective in our investment process. Momentum continued into early January with an additional $45 million loan commitment closing the first week of the new year, $43.6 million of which was funded.”
Total loans funded for the year equaled $232.9 million, bringing the total loan originations to $514 million since the Fund’s December 2016 launch. Total loan commitments since inception equaled $560 million.
Originations
Runway Growth funded nine new loans during the full year ended December 31, 2019, to new and existing portfolio companies. The table below highlights new portfolio company activity for the year ended December 31, 2019.
| Company | Company Description | Facility Type | Funded Commitment ($000) | |||||
| Scale Computing, Inc. | Scale is a provider of edge computing hardware and software that enables hyperconverged infrastructure. | Senior Secured Term Loan | $ | 15,000 | ||||
| Echo 360 Holdings, Inc. | Echo 360 is a application software company that provides a video and data capture platform. | Senior Secured Term Loan | 16,500 | |||||
| Pivot3, Inc. | Pivot3 is a IT service management company providing automated hyperconverged infrastructure solutions. | Senior Secured Term Loan | 20,000 | |||||
| Dejero Labs Inc. | Dejero Labs is a a provider of in-cloud managed solutions for video transport, cloud computing, and Internet connectivity. | Senior Secured Term Loan | 11,000 | |||||
| CloudPassage Inc. | CloudPassage is a provider of SaaS security solutions purpose-built for the cloud. | Senior Secured Term Loan | 7,500 | |||||
| Massdrop Inc. | Massdrop is a specialty retailer and product developer that uses data and insights from its community to develop and find products. | Senior Secured Term Loan | 17,500 | |||||
| INRIX, Inc. | INRIX is a provider of location-based data and analytics, such as traffic and parking data, to automakers, cities and road authorities worldwide. | Senior Secured Term Loan | 25,000 | |||||
| Brilliant Earth, LLC | Brilliant Earth is a custom designer, manufacturer, and online retailer of specialty consumer products. | Senior Secured Term Loan | 35,000 | |||||
| Longtail Ad Solutions, Inc. dba J.W. Player | Longtail is a cloud based video player and video management platform for publishers and broadcasters. | Senior Secured Term Loan | 25,000 | |||||
Runway Growth also funded additional loans in the amount of $60.4 million to eight existing portfolio companies.
Liquidity Events
In October, in conjunction with its sale to Stryker Corporation, our portfolio company Mobius Imaging LLC, prepaid its outstanding principal of $15.5 million, plus interest and end-of-term payment. In addition, Runway Growth received approximately $1.9 million in connection with the termination of its warrants in Mobius Imaging LLC. Five liquidity events that our portfolio companies experienced for the full year 2019 generated $82.5 million in loan repayments and approximately $2.9 million in proceeds from the termination of warrants.
About Runway Growth Capital LLC and Runway Growth Credit Fund, Inc.
Runway Growth Capital LLC is the investment advisor to Runway Growth Credit Fund Inc., a lender of growth capital to companies seeking an alternative to raising equity. Led by industry veteran David Spreng, the Fund provides senior term loans of $10 million to $50 million to fast-growing companies based in the United States and Canada. The Fund is a closed-end investment fund that has elected to be regulated as a business development company under the Investment Company Act of 1940. For more on the Fund and its manager, Runway Growth Capital LLC, please visit our website at www.runwaygrowth.com.
Forward-Looking Statements
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Runway Growth’s filings with the Securities and Exchange Commission. Runway Growth undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contact:
Jay Kolbe
Jay@Impactpartnerspr.com