Rugs USA Debt Sees Some Relief Amid Loan Rally

Pandemic darling RugsUSA is benefiting from a strong rally in the leveraged loan market after enduring a months-long rout that sent its debt into distress.

The Cranbury, New Jersey-based e-commerce provider of rugs, lighting and home decor saw its $500 million leveraged loan lose roughly 30 cents on the dollar from July into August, and remained hovering in distressed territory until the end of the year.

Things have turned around for the online retailer, however, with its loans now trading up to 76 cents on the dollar as the loan market mounts a comeback.

The change comes as other …