Oct. 14 at 10:50 AM
$RENT Rent the Runway (NASDAQ:RENT) has announced a major growth recapitalization plan to strengthen its balance sheet and enhance financial flexibility. Aranda Principal Strategies (APS) will convert over
$243M of debt into common equity at
$9.23 per share, representing an 80.9% premium to the recent trading price. STORY3 Capital Partners and Nexus Capital Management are joining APS to inject
$20M in new capital.
The transaction will reduce RTR's outstanding debt to
$120M with maturity extended to 2029. The company will initiate a
$12.5M rights offering to existing stockholders at
$4.08 per share. RTR reported strong performance with 147,000 active subscribers in Q1 2025, achieving its highest quarterly customer retention in four years.
The transaction is expected to close by December 31, 2025, subject to stockholder approval.