Rent the Runway reduces debt and extends maturity through recapitalisation

Rent the Runway, Inc. (RTR), the pioneer in apparel rental, announced the successful closing of its previously announced recapitalisation transactions, a strategic move designed to significantly enhance its financial position and flexibility.

CEO and co-founder Jennifer Hyman termed the recapitalisation as a crucial milestone, adding, “By strengthening our balance sheet and partnering with APS, STORY3 and Nexus, we are now in a better position than ever to focus on our customers, deliver profitable growth, and advance our mission to reinvent how women access fashion.”

The recapitalisation meaningfully reduced the company's outstanding debt and extended the maturity of its remaining balance. As part of the transaction, Aranda Principal Strategies (APS) converted a substantial portion of its debt into common equity, and an investor group including APS, Story3 Capital Partners, and Nexus Capital Management contributed 20 million dollars in cash to RTR's balance sheet.

Effective upon closing, RTR's total outstanding debt balance was reduced to 120 million dollars with its maturity extended to 2029. The company also secured an additional 12.5 million dollars in gross proceeds through a concurrent rights offering.

RTR will continue to operate as a public company, trading on Nasdaq under the ticker symbol "RENT."