<article>Singapore&#8217;s state investment firm Temasek is extending a $200-million credit facility to US clothing retailer Rent the Runway.</article>

Singapore&#8217;s state investment firm Temasek is extending a $200-million credit facility to US clothing retailer Rent the Runway.
Rent the Runway is an e-commerce service that rents everyday and designer clothing for special events and occasions.
Temasek&#8217;s term loan to the retailer offers it the flexibility to pull portions of the funds when needed. Rent the Runway plans to use the funding to grow its subscription business, expand logistics operations and refinance its existing debt.
Prior to this deal with Temasek, Rent the Runway had raised more than $200 million from investors such as Bain Capital, KPCB, Highland Capital and TCV.
Last year, Rent the Runway introduced a subscription service covering unlimited rentals for $89/month.
The US clothing retailer chose debt over equity to draw funds as and when required, instead of in one go.
“The ability to draw from this facility gives us flexibility to accelerate our growth plans for our subscription business over the next few years,” said Scarlett O’Sullivan, Chief Financial Officer of Rent the Runway.
A credit facility also helps the company avoid diluting the stake of its existing investors in the near term. Temasek has been issued some warrants as part of the deal, where it can buy shares in the company in the future at a predetermined price.
Last month, Temasek Holdings announced that their portfolio value hit a record $225 billion in the first quarter ending 31 March 2018.
While the US comprises 13 per cent Temasek&#8217;s total portfolio, it accounted for the largest share of new investments during the year.
According to a statement, Temasek said they have been increasing their focus on &#8220;technology enabler&#8221; sectors such as the payments space.
In July, Temasek Holdings led a <a href="https://www.dealstreetasia.com/stories/temasek-flywire-payments-103407/">$100-million Series D funding for Flywire</a>, a Boston-based cross-border payment solutions provider, joining investors like Bain Capital Ventures in the same round.
Temasek has said it is also scouting for opportunities in life sciences and agribusiness. Their investment themes revolve around issues such as technological advances, demographic shifts and evolving consumption patterns.

Rent the Runway plans to use the funding to grow its subscription business, expand logistics operations and refinance its existing debt.

Temasek extends $200m credit facility to Rent the Runway

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Temasek extends $200m credit facility to Rent the Runway

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