Runway Growth Finance Corp. (NASDAQ:RWAY), a Maryland-based specialty finance company, announced the resignation of director Gregory M. Share. The departure was made public through a recent SEC Form 8-K filing, with the event occurring on Friday, November 15, 2024, and the filing submitted on Monday, November 18, 2024.
Mr. Share communicated his intention to step down from the Board of Directors to the company, clarifying that his decision was not the result of any disagreement with the company's operations, policies, or practices.
According to the filing, the vacancy left by Mr. Share's departure will be filled by a nominee from OCM Growth Holdings, LLC, in accordance with a Stockholder Agreement dated December 15, 2016. OCM is expected to propose a candidate who is not an "interested person" as defined by the Investment Company Act of 1940, indicating an individual without a conflicting interest in the company, its investment adviser, or OCM itself.
Runway Growth Finance Corp., formerly known as Runway Growth Credit Fund Inc. and GSV Growth Credit Fund Inc., operates from its headquarters in Chicago, Illinois. The company specializes in providing growth capital to both public and private companies. Runway Growth Finance Corp. has several securities registered with the SEC, including common stock and notes due in 2027, all traded on the Nasdaq Global Select Market under the symbols RWAY, RWAYL, and RWAYZ.
In other recent news, Runway Growth Finance Corp. reported robust third-quarter financial results, including a total investment income of $36.7 million and a net investment income of $15.9 million. These earnings comfortably covered its quarterly dividend.
The company also announced a definitive agreement to be acquired by BC Partners Credit, a move that aims to enhance capabilities while preserving independence. Runway's fair value investment portfolio was valued at approximately $1.07 billion, with net assets increasing to $507.4 million and net asset value (NAV) per share rising to $13.39. Despite changing market conditions, including recent Federal Reserve rate cuts, the company plans to continue its disciplined investment approach.
Operating expenses did increase by 6% from the previous quarter to $20.8 million, but Runway recorded a net unrealized gain of $9.2 million, contrasting with a net unrealized loss in the prior quarter. These are some of the key recent developments for Runway Growth Finance.
InvestingPro Insights
As Runway Growth Finance Corp. (NASDAQ:RWAY) navigates this board transition, InvestingPro data offers valuable context for investors. The company's market capitalization stands at $389.33 million, with a notably low P/E ratio of 5.95 based on the last twelve months as of Q3 2024. This suggests the stock may be undervalued relative to its earnings.
RWAY's financial health appears robust, with an impressive operating income margin of 73.91% for the same period. This high profitability metric aligns with an InvestingPro Tip indicating that the company has been profitable over the last twelve months.
Of particular interest to income-focused investors is RWAY's substantial dividend yield of 29.87%. An InvestingPro Tip highlights that the company has raised its dividend for 3 consecutive years, demonstrating a commitment to shareholder returns. This generous dividend policy could be attractive to investors seeking income, especially in light of the board changes.
For a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide further insights into RWAY's financial position and market performance during this transition period.
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