THE REALREAL ANNOUNCES REFINANCING OF 2029 SENIOR SECURED NOTES WITH NEW $150 MILLION TERM LOAN AND $25 MILLION REVOLVING CREDIT FACILITY
The RealReal secured a new $150 million senior secured term loan and a $25 million revolving credit facility from Fortress-managed funds to redeem all of its 4.25%/8.75% PIK/Cash Pay Senior Secured Notes due 2029 at par, with funding expected on or about October 19, 2026. The new facilities mature in October 2033, extending secured debt maturities roughly four years and eliminating the December 2027 springing maturity, while the SOFR+5.75% all-cash-pay pricing replaces a 13.00% all-in rate and is expected to cut first-year interest expense by about $4 million.
Key figures
- Term loan
- $150 million
- New pricing
- SOFR+5.75%
- New maturity
- October 2033
- Prior all in rate
- 13.00% (8.75% cash plus 4.25% PIK)
- Annual interest savings
- ~$4 million in first year
- Revolving credit facility
- $25 million
- Medium term leverage target
- $150 million
- Adjusted ebitda margin target
- 15-20%
AI analysis
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