Rent the Runway, Inc. announced a growth recapitalization plan on August 21, 2025, designed to dramatically enhance its balance sheet and financial flexibility. As part of this transaction, Aranda Principal Strategies (APS) will convert approximately $243 million of its accreted debt balance into common equity ownership in the company, at an effective conversion price of $9.23 per share.
The recapitalization also includes a $20 million incremental cash contribution to Rent the Runway's balance sheet from APS, STORY3 Capital Partners, and Nexus Capital Management. Upon closing, the company's outstanding debt balance will be reduced to $120 million, and its maturity will be extended to 2029, significantly improving its debt profile.
In connection with the transaction, Rent the Runway will initiate a rights offering, allowing existing stockholders to purchase up to $12.5 million of shares at $4.08 per share, fully backstopped by APS, STORY3, and Nexus. Peter Comisar of STORY3 and Damian Giangiacomo of Nexus will join Rent the Runway’s Board of Directors, bringing additional sector expertise.
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