The RealReal (NASDAQ: REAL) has announced its successful completion of add-on debt exchange transactions, resulting in a reduction of its total indebtedness by over $6 million. This move also extends a significant portion of the company's remaining 2028 maturities to 2031.
Following the exchange of approximately $49.5 million aggregate principal amount of the 2028 notes in connection with these transactions, less than $50.0 million aggregate principal amount of the 2028 notes will remain outstanding.
The company has also issued $146,685,000 of 4.00% convertible senior notes due 2031 on February 10, 2025, which, combined with the additional notes, will form a single class of $190,079,000 aggregate principal amount of 4.00% convertible senior notes due 2031.
These strategic debt exchange transactions have been conducted in transactions exempt from registration under the Securities Act of 1933, as amended.
Rati Levesque, President and Chief Executive Officer of The RealReal, highlighted the company's commitment to strengthening its balance sheet and reducing its debt. The company has reduced its total indebtedness by over $86 million since the beginning of 2024 and has favorably rebalanced its debt maturity cycle.
Moelis & Company LLC is serving as the financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to The RealReal in connection with the exchange transactions.
The RealReal, as the world's largest online marketplace for authenticated, resale luxury goods, boasts more than 40 million members. With a rigorous authentication process overseen by experts, the company provides a safe and reliable platform for consumers to buy and sell their luxury items.
The company has reiterated its commitment to sustainability by giving new life to pieces from thousands of brands across numerous categories, supporting the circular economy.
Following these announcements, the company's shares moved -6.16%, and are now trading at a price of $7.62. Check out the company's full 8-K submission here.
