Company: SWKH
Filing Date: 2025-10-10
Form Type: 425
Source: 0001104659-25-098795
Chunk: 4

Company: SWK Holdings Corp
Filing Date: 2025-10-10
Form: 425
Chunk 4
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 positioned favorably amid industry consolidation, bolstered by the support of the BC Partners Credit platform.

We do not plan on doing deals for the sake of doing deals. Rather, we will approach it in a thoughtful manner when there is strong strategic rationale and the math works.

Now, I want to turn the call over to Tom to discuss how this transaction enhances our financial profile.

Thomas B. Raterman, CFO and COO

Thank you, Greg. To conclude today’s call, I will discuss the final pillar, which is that this transaction enhances our financial profile and grows our shareholder base.

Looking at slide 10, as Greg touched on, this transaction introduces Runway as a serious participant in the consolidation of the venture and growth lending markets. As private market competition intensifies, we believe it is important to maintain this position. This deal demonstrates our ability to structure, win, and complete transactions, utilizing both cash and equity, to drive scale and enhance our market position.

Given the strategic benefits we’ve already outlined today, we see this transaction as a real catalyst for Runway’s financial profile.

We anticipate enhanced earnings power supported by the following key drivers:

| · | First,                                                                                    
 by a larger portfolio of $1.3 billion dollars, on a June 30th pro-forma basis.            
 Notably, the acquisition will more than offset the impact of anticipated Q3 repayments we 
 signaled during the last earnings call.                                                   |

| · | Second,                                                                               
 an optimized leverage profile of 1.1x that puts us in the middle of our target range. |

| · | Third,                                                                                     
 an attractive target portfolio that offers incremental yield relative to Runway’s existing 
 portfolio.                                                                                 |

| · | Fourth,                                                        
 greater expense efficiency as a result of our increased scale. |

Together, we anticipate this will generate mid-single digit run-rate NII accretion during the first full quarter following the transaction close. It will also support modest ROE expansion and improved dividend coverage.

4

In tandem with enhancing earnings power, we are also lowering our risk profile, demonstrated by sector diversification and what we expect to be a smaller average loan size of 2%. We are also improving our access to debt financing markets, particularly our ability to access ABS and other secured lending markets.

Finally, Runway is broadening its shareholder base and trading liquidity of its common shares through the merger terms, which include $75.5 million in Runway shares to be issued to SWK’s stockholders. As a