RWAYM: A 7.75% Notes IPO From Runway Growth Finance

Impact · against what's priced in

RWAY's credit profile has weakened, characterized by a significant drop in asset coverage and a shift deeper into high-yield territory. The new 7.75% notes offer average sector yields but provide poor risk-adjusted returns compared to peers, suggesting a deterioration in the company's fundamental credit strength.

RWAY−0.60

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In context

The asset coverage ratio declined from 211% to 174%, reducing the loan loss cushion while the new 7.75% notes reflect a shift deeper into high-yield territory.

Read from the article alone

• RWAY
• asset coverage
• bdc
• bonds
• credit quality
• fixed income
• high yield

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