Grindr, a social network for the LGBTQ community, completed a refinancing via a new $300 million term loan A facility and a $50 million revolving credit facility.
The joint lead arrangers of the transaction are J.P. Morgan, Bank of America, Citizens Bank and Silicon Valley Bank, a division of First Citizens Bank. Capital One also participated as a lender.
“We would like to thank our new financial partners for backing Grindr and the diverse gay community we represent,” George Arison, CEO of Grindr, said. “This is very meaningful, and I’m proud to have the support of some of the world’s leading financial institutions in enabling a more open and welcoming financial ecosystem. We look forward to continuing our work to create a world where the lives of our users are free, equal and just.”
The new facilities, which mature in November 2028, bear interest at a rate equal to term SOFR plus an applicable margin of 275 to 325 basis points above SOFR), based on Grindr’s leverage.
“Restructuring our high-cost lending facility was a key objective in our first year as a public company, and we’re very pleased with our successful outcome, especially in a challenging interest rate environment,” Vanna Krantz, CFO of Grindr, said. “The significant reduction in cash interest expense achieved through this transaction will strengthen both our balance sheet and our profitability profile. We are excited about Grindr’s strong growth potential next year and beyond.”
Grindr went public in November 2022 and reported Q3/23 results of 39% year-over-year revenue growth to $70.3 million and an adjusted EBITDA margin of 46%. Based on the company’s continued financial performance throughout 2023, the company increased its revenue growth guidance for the full year to 31% and maintained its expected adjusted EBITDA margin at 41%.
