The RealReal refinances 2029 notes with $150M Fortress term loan, $25M revolver; cuts interest ~$4M

TheRealReal, Inc.

New $150M senior secured term loan + $25M revolver with Fortress; initial rate SOFR+5.75% all cash vs 13.00% all-in (8.75% cash+4.25% PIK) on the 2029 notes.
Proceeds redeem all 2029 Notes at par; funding expected on or about Oct. 19, 2026. New facilities mature Oct. 2033, extending secured maturity ~4 years.
Company expects ~$4M annual interest expense reduction in first year; CFO Ajay Gopal cites lowering total debt by >$80M over past two years.
Covenants: first lien gross leverage 4.75:1.00 through Dec. 31, 2028 then 4.25:1.00; minimum liquidity $25M; 2%/1% prepayment premium in first/second years.
Medium-term target: reduce total leverage to $150M, expand Adjusted EBITDA margin to 15-20%; Q3 2026 earnings call set for Oct. 29, 2026.

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