What changed in this filing

/stocks — the workspaceLOADING

Item 5. Other Information

2022-05-05 compared with 2021-11-04 · 45 added, 7 removed, 26 unchanged (67% of the section changed)

Other Information

Not applicable.

Fees and Expenses

The following table is being provided to update as of March 31, 2022, certain information in our registration statement on Form N-2 (File No.

The information is intended to assist you in understanding the costs and expenses that an investor in our common stock will bear directly or indirectly.

We caution you that some of the percentages indicated in the table below are estimates and may vary.

Except where the context suggests otherwise, whenever this Quarterly Report on Form 10-Q contains a reference to fees or expenses paid by “you,” “us,” or “the Company,” or that “we” will pay for expenses, stockholders will indirectly bear such fees or expenses as investors in us.

Stockholder transaction expenses:

Sales load (as a percentage of offering price)

Offering expenses (as a percentage of offering price)

Dividend reinvestment plan expenses

Total stockholder transaction expenses (as a percentage of offering price)

Annual expenses (as a percentage of net assets attributable to common stock):

Management Fee payable under the Investment Advisory Agreement

Incentive Fee payable under the Investment Advisory Agreement

Interest payments on borrowed funds

Other expenses

Total annual expenses

In the event that the securities are sold to or through underwriters, a related prospectus supplement will disclose the applicable sales load (underwriting discount or commission).

A related prospectus supplement will disclose the estimated amount of offering expenses, the offering price and the estimated amount of offering expenses borne by the Company as a percentage of the offering price.

The expenses of the dividend reinvestment plan are included in “other expenses” in the table above.

For additional information, see “ Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations – Distributions.”

Assumes the base management fee will be an amount equal to 0.40% (1.60% annualized) of our average daily Gross Assets during the most recently completed calendar quarter.

For additional information, see “ Note 7- Related Party Agreements and Transactions:

Base Management Fee.”

The incentive fee, which provides RGC with a share of the income that RGC generates for us, consists of an Investment Income Fee and a Capital Gains Fee.

Under the Income Incentive Fee, we pay RGC each quarter an incentive fee with respect to our Pre-Incentive Fee net investment income.

The Income Incentive Fee is calculated and payable quarterly in arrears based on the Pre-Incentive Fee net investment income for the immediately preceding fiscal quarter.

Payments based on Pre-Incentive Fee net investment income will be based on the Pre-Incentive Fee net investment income earned for the quarter.

Pre-Incentive Fee net investment income, expressed as a rate of return on the value of our net assets (defined as total assets less liabilities) at the end of the immediately preceding fiscal quarter, will be compared to a “hurdle rate” of 2.0% per quarter (8.0% annualized).

We will pay RGC an Income Incentive Fee with respect to the our Pre-Incentive Fee net investment income in each calendar quarter as follows:

(1) no Income Incentive Fee in any calendar quarter in which our Pre-Incentive Fee net investment income does not exceed the hurdle rate of 2.0%;

(2) 80% of our Pre-Incentive Fee net investment income with respect to that portion of such Pre-Incentive Fee net investment income, if any, that exceeds the hurdle rate but is less than 2.667% in any calendar quarter (10.668% annualized) (the portion of our Pre-Incentive Fee net investment income that exceeds the hurdle but is less than 2.667% is referred to as the “catch-up”;

the “catch-up” is meant to provide RGC with 20.0% of our Pre-Incentive Fee net investment income as if a hurdle did not apply if our Pre-Incentive Fee net investment income exceeds 2.667% in any calendar quarter (10.668% annualized));

and (3) 20.0% of the amount of our Pre-Incentive Fee net investment income, if any, that exceeds 2.667% in any calendar quarter (10.668% annualized) payable to RGC (once the hurdle is reached and the catch-up is achieved, 20.0% of all Pre-Incentive Fee net investment income thereafter is allocated to RGC).

Under the Capital Gains Fee, we will pay RGC, as of the end of each calendar year, 20.0% of our aggregate cumulative realized capital gains, if any, from the date of our election to be regulated as a BDC through the end of that calendar year, computed net of our aggregate cumulative realized capital losses and aggregate cumulative unrealized capital depreciation through the end of such year, less the aggregate amount of any previously paid Capital Gains Fee.

Interest payments on borrowed funds represents an estimate of our annualized interest expense based on borrowings under the Credit Agreement.

The assumed weighted average interest rate on our total debt outstanding was 3.91%.

We may borrow additional funds from time to time to make investments to the extent

we determine that the economic situation is conducive to doing so.

We may also issue debt securities or preferred stock, subject to our compliance with applicable requirements under the 1940 Act.

Includes our overhead expenses, such as payments under the Administration Agreement for certain expenses incurred by the Adviser.

See “Note 7- Related Party Agreements and Transactions :

Administration Agreement.” We based these expenses on estimated amounts for the current fiscal year.

The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the SEC:

2 unchanged sentences

Second Amended and Restated Bylaws (2)

Trademark License Agreement by and between Runway Growth Capital LLC and the Company, dated September 23, 2021.

Fourth Amendment to Credit Agreement, dated as of August 3, 2021, among Runway Growth Credit Fund Inc., as borrower;

Sixth Amendment to Credit Agreement, dated as of April 20, 2022, among Runway Growth Finance Corp., as borrower;

the financial institutions party thereto as lenders;

12 unchanged sentences

(2) Previously filed as an exhibit to the Registrant’s Current Report on Form 8-K filed with the SEC on August 19, 2021.

(3) Previously filed as an exhibit to the Registrant’s Current Report on Form 8-K filed with the SEC on September 23, 2021.

(4) Previously filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on August 5, 2021.

(3) Previously filed as an exhibit to the Registrant’s Current Report on Form 8-K filed with the SEC on April 20, 2022.

(4) Previously filed as an exhibit to the Registrant’s Current Report on Form 8-K filed with the SEC on October 27, 2021.

1 unchanged sentence

RUNWAY GROWTH FINANCE CORP.

November 4, 2021

President, Chief Executive Officer and Chairman of the Board of Directors

November 4, 2021

/s/ Thomas B.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 5. Other Information