Company: SWKH
Filing Date: 2025-10-10
Form Type: 425
Source: 0001104659-25-098795
Chunk: 2

Company: SWK Holdings Corp
Filing Date: 2025-10-10
Form: 425
Chunk 2
---
, the transaction will be a NAV-for-NAV merger structured as a tax-free reorganization, with an estimated purchase price of approximately $220 million. Consideration includes $75.5 million in Runway shares valued at closing NAV per share, and approximately $145 million in cash. Final purchase price will be calculated 48 hours before closing. The merger agreement for this transaction is included in the Form 8-K we filed with the SEC.

The transaction is expected to close at the end of the year or early in the first quarter of 2026, pending shareholder and regulatory approvals and other customary closing conditions.

The team will provide additional details shortly, but I’d like to emphasize that this transaction reinforces our commitment to growing and diversifying our asset base, in a prudent manner, to deliver attractive returns to our shareholders. With ever increasing competition across private markets, we are laser focused on positioning this platform to compete with the best in the business.

Now, I will turn the call over to Jody to provide background on SWK.

Jody Staggs, SWK President and CEO

Thank you, David, it’s a pleasure to join the Runway team on the call and speak to the portfolio we’ve built at SWK and how we complement Runway’s existing capabilities.

Turning to slide five, as David mentioned, SWK is a specialty finance company focused on the healthcare and life science industries. We provide minimally dilutive financing to small- and mid-sized commercial-stage life science companies. Our team invests in a range of companies and products across the biotechnology, medical device, medical diagnostic and tool, animal health, and pharmaceutical industries.

Our experience is this industry is broad in reach, growing, and minimally correlated with economic cycles. Our credit underwriting is anchored by identifying innovative products that have barriers to entry through FDA approval, robust intellectual property, strong clinical data, and physician preference. We believe such products provide tangible collateral to secure appropriate levels of leverage.

Historically, our target financing size has been $5 million to $25 million, and our focus has been on secured, first lien loans and royalty monetizations. As of August 2025, SWK has completed financings with 58 parties, deploying $867 million of capital since inception. Our portfolio has generated mid-teens gross returns on capital with a history of strong credit quality.

Through this merger, shareholders will benefit from the robust platform that Runway and BC Partners Credit have built. The combined entity will have increased capacity to issue larger checks to high