THE REALREAL ANNOUNCES REFINANCING OF 2029 SENIOR SECURED NOTES WITH NEW $150 MILLION TERM LOAN AND $25 MILLION REVOLVING CREDIT FACILITY
Key Highlights
- ➤$150M term loan redeems all outstanding 2029 senior secured notes at par
- ➤New facilities mature October 2033, extending secured debt maturity approximately four years
- ➤Interest rate SOFR+5.75% expected to cut annual interest expense approximately $4M
- ➤$25M revolving credit facility adds liquidity and financial flexibility
- ➤Company targets reducing total leverage to $150M in the medium term
Expert Statements
Ajay Gopal, Chief Financial Officer of The RealReal
“This refinancing represents a key milestone in our plan to strengthen our balance sheet. Over the last two years, we have successfully lowered our total debt by more than $80M. This transaction builds on that progress by reducing overall interest costs and further extending our maturity profile.”
Ajay Gopal, Chief Financial Officer of The RealReal
“We believe our consistent progress in growing Adjusted EBITDA, coupled with a cash-efficient operating model that translates Adjusted EBITDA growth into robust cash flows, positions us well to continue deleveraging in the years ahead.”
Mac Maynard, Managing Director in Corporate Credit at Fortress Investment Group
“We are pleased to partner with The RealReal on this transaction. We believe The RealReal has established a market-leading position in luxury resale backed by a differentiated business model, and the Company's strong and improving financial profile made this a compelling opportunity for our investors.”
THE REALREAL ANNOUNCES REFINANCING OF 2029 SENIOR SECURED NOTES WITH NEW $150 MILLION TERM LOAN AND $25 MILLION REVOLVING CREDIT FACILITY PR Newswire
* Refinancing Extends Secured Debt Maturity to 2033 and Reduces Interest Expense * Outlines Medium-Term Target for Leverage SAN FRANCISCO, Oct. 15, 2026 /PRNewswire/ -- The RealReal, Inc. (Nasdaq: REAL) (the "Company"), the world's largest online marketplace for authenticated, resale luxury goods, today announced that it has entered into a credit agreement providing for a new $150 million senior secured term loan and a new $25 million senior secured revolving credit facility (collectively, the "New Credit Facilities"). The Company intends to use the proceeds of the term loan to redeem all of its outstanding 4.25%/8.75% PIK/Cash Pay Senior Secured Notes due 2029 (the "2029 Notes") at par. Funding of the term loan and redemption of the 2029 Notes are expected to occur on or about October 19, 2026.
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