Core Viewpoint - Rent the Runway, Inc. is undergoing a growth recapitalization to strengthen its balance sheet, reduce debt, and enhance financial flexibility, while continuing to operate as a public company under the ticker symbol RENT [1][2][3] Financial Restructuring - The recapitalization will significantly reduce the Company's debt, with APS converting over $100 million of its debt into common equity, resulting in an estimated $243 million of debt converted at an effective price of $9.23 per share, an 80.9% premium to the recent average price [5][6] - The outstanding debt balance will be reduced to $120 million, with maturity extended to 2029 [6] - An additional $20 million in cash will be contributed to the balance sheet, increasing the loan balance equivalently [6] Rights Offering - A rights offering will be initiated, allowing existing stockholders to purchase up to $12.5 million of shares at a price of $4.08 per share, representing a 20% discount to the recent average price [7] Business Strategy and Growth - The Company aims to execute a multi-year transformation plan focused on expanding its customer base and enhancing the product and customer experience, having ended Q1 2025 with a record 147,000 active subscribers [4][5] - The management team has made significant progress towards a differentiated strategy and financial discipline, positioning the Company for long-term value creation [3][4] Market Position and Potential - The partnership with STORY3 and Nexus is expected to leverage their sector expertise to drive growth in the expanding rental market, which has been identified as a significant opportunity for fashion brands [3][4] - The Company has seen improved customer retention and reduced churn rates, indicating a positive trend in customer engagement [5]