"Rent the Runway Completes Recapitalization with $230 Million Debt Conversion and $20 Million Cash Injection"

"Davis Polk advised Rent the Runway, Inc. (RTR) on a recapitalization that involved converting approximately $230 million of debt into equity and securing an additional $20 million in cash from investors. Following the recapitalization, RTR's debt was reduced to $120 million, with a maturity extension to 2029. The company also raised $12.5 million through a rights offering and will continue to operate as a public entity under the ticker "RENT" on Nasdaq. Founded in 2009, RTR offers a subscription service for renting designer fashion items."

Davis Polk & Wardwell LLP advised Rent the Runway, Inc. (RTR) on a series of recapitalization transactions, while also providing guidance to various stakeholders involved in the process. The recapitalization involved Aranda Principal Strategies converting approximately $230 million of its existing debt investment into common equity ownership, alongside an investor group comprising STORY3 Capital Partners and Nexus Capital Management contributing $20 million in cash to RTR’s balance sheet. As a result of these transactions, RTR's total outstanding debt was reduced to $120 million, with the maturity extended to 2029. Additionally, RTR conducted a concurrent rights offering, generating an incremental $12.5 million in primary gross proceeds. Following the recapitalization, RTR will continue to operate as a public company, trading under the ticker symbol “RENT” on Nasdaq. The Davis Polk corporate team included partner Paul S. Scrivano and counsel Brian L. Friedman. Partner Nicole Brookshire and associates Michael Schuster and Courtney Wax provided capital markets advice. Partner Jennifer S. Conway and associate Josh Ehrhart offered executive compensation advice. Partner Jack Orford, counsel Christopher D. Milla, and associate Sophie E. Broadley provided sponsor finance advice. Members of the Davis Polk team are based in the Northern California and New York offices.

"Rent the Runway Completes Recapitalization with $230 Million Debt Conversion and $20 Million Cash Injection"

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