The RealReal Refinances Debt to Extend Maturity to 2033

The new financing, provided by affiliates of Fortress Investment Group, consists of a $150 million senior secured term loan and a $25 million revolving credit facility. The company plans to use these proceeds to redeem its outstanding 4.25%/8.75% PIK/Cash Pay notes in full. This move is a central component of the firm's broader strategy to simplify its balance sheet and lower its overall leverage.

Chief Financial Officer Ajay Gopal noted that the company has reduced its total debt by more than $80 million over the past two years. Management now targets a medium-term leverage reduction to $150 million, supported by a business model focused on expanding Adjusted EBITDA margins to a 15-20% range. The new facility, which carries an initial interest rate of SOFR plus 5.75%, replaces the previous 13% all-in rate on the 2029 notes, marking a significant step toward stabilizing the company's long-term financial profile. The transaction is expected to close on or about October 19, 2026.