Rent the Runway, Inc. announced that it has amended its credit facility with the existing lender and administrative agent (‘Existing Lender'), as noted in disclosed regulatory filings. The amended facility extends the maturity date from October 2024 to October 2026, reduces cash interest payments, and amends certain other terms (the ‘Amended Facility'). The combination of the extended maturity and reduced cash interest payments, totaling over $20M in cash during the next two years, provides significant strategic flexibility, strengthening Rent the Runway's financial profile, cash flow trajectory and ability to fund profitable growth.

The Amended Facility complements the steps Rent the Runway has already taken to significantly improve its cost structure and profitability, such as reducing its fixed cost base, transforming the capital efficiency of its product acquisition and changing its subscription programs, which have resulted in doubling of gross margins since 2019 to 41% in Third Quarter '22. The key terms of the Amended Facility include: · 2-Year Maturity Date Extension: From October 2024 to October 2026 · Cash Interest Rate Reduction: Previously 12% total interest (consisting of 7% cash and 5% paid in kind) revised as follows: 2% cash interest from February 1, 2023 through July 31, 2024, increasing to 5% cash interest for the remaining duration of the term ??(with the remainder of the total interest in each period to be paid in kind). The total interest rate will remain unchanged at 12% through January 31, 2024, subsequently increasing 1% annually.

New Warrants: Existing Lender will receive warrants to purchase two million shares of RTR's Class A Common Stock at $5.00/share strike price. Board of Directors Observer Seat: Existing Lender will continue to maintain one observer seat, as they have done since 2018. Certain other clarifications and updates Other key provisions of the Amended Facility remain unchanged from the existing facility, including the minimum liquidity covenant of $50M.