{"id":727077,"date":"2023-01-31T07:28:03","date_gmt":"2023-01-31T12:28:03","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/rent-the-runway-announces-corporate-debt-restructuring\/"},"modified":"2023-01-31T07:28:03","modified_gmt":"2023-01-31T12:28:03","slug":"rent-the-runway-announces-corporate-debt-restructuring","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/rent-the-runway-announces-corporate-debt-restructuring\/","title":{"rendered":"Rent the Runway Announces Corporate Debt Restructuring"},"content":{"rendered":"

\nTransaction enhances Rent the Runway\u2019s ability to pursue its growth goals by extending maturity to October 2026 and reducing cash interest payments significantly
\n<\/h2>\n
\n

NEW YORK, Jan. 31, 2023 (GLOBE NEWSWIRE) — Rent the Runway, Inc. (\u201cRent the Runway\u201d or \u201cRTR\u201d) (Nasdaq: RENT), the largest shared designer closet, today announced that it has amended its credit facility with the existing lender and administrative agent (\u201cExisting Lender\u201d), as noted in our disclosed regulatory filings. The amended facility extends the maturity date from October 2024 to October 2026, reduces cash interest payments, and amends certain other terms, as described below (the \u201cAmended Facility\u201d).<\/p>\n

The combination of the extended maturity and reduced cash interest payments, totaling over $20M in cash during the next two years, provides significant strategic flexibility, strengthening Rent the Runway’s financial profile, cash flow trajectory and ability to fund profitable growth. The Amended Facility complements the steps Rent the Runway has already taken to significantly improve its cost structure and profitability, such as reducing its fixed cost base, transforming the capital efficiency of its product acquisition and changing its subscription programs, which have resulted in doubling of gross margins since 2019 to 41% in Q3\u201922.<\/p>\n

“We are thrilled to close Rent the Runway\u2019s 2022 fiscal year with this important milestone, yet another proofpoint of our commitment to balancing robust growth with profitability. The Amended Facility significantly improves our credit position and cash interest obligations over the next several years, and, we believe, bolsters our path to free cash flow profitability in the medium term,\u201d said Scarlett O\u2019Sullivan, CFO of Rent the Runway.<\/p>\n

\u201cWe believe this extension in maturity and reduction in cash interest is transformative to our strategic plans and puts RTR in an even better position to reach our growth and profitability goals and capture the large opportunity we see ahead,\u201d<\/em> said Jennifer Hyman, Co-Founder, Chair and CEO of Rent the Runway.<\/p>\n

The key terms of the Amended Facility include:<\/p>\n