Grindr Refinancing with JPMorgan
Grindr, the world’s largest gay social networking app, is working with JPMorgan Chase & Co. to refinance a term loan led by Fortress Investment Group LLC. The loan is worth $100 million and is part of a larger refinancing package.
Background of Grindr
Grindr was founded in 2009 by Joel Simkhai and is based in West Hollywood, California. It is the world’s largest gay social networking app, with over 27 million users in 192 countries. The app allows users to connect with other users in their area and chat, share photos, and meet up.
Grindr’s Acquisition
In 2018, Grindr was acquired by Chinese gaming company Beijing Kunlun Tech Co. Ltd. for $245 million. Kunlun then took the company public in 2019, raising $93 million in an initial public offering.
Grindr’s Financial Struggles
Since its acquisition, Grindr has struggled financially. The company reported a net loss of $33 million in the first half of 2020, and its revenue has declined by nearly 50% since 2018.
Grindr’s Refinancing Package
In order to address its financial struggles, Grindr is now working with JPMorgan to refinance a term loan led by Fortress Investment Group. The loan is worth $100 million and is part of a larger refinancing package.
Grindr’s Refinancing Terms
The refinancing package includes a $100 million term loan, a $50 million revolving credit facility, and a $50 million bridge loan. The term loan will have a five-year maturity and will be secured by Grindr’s assets. The revolving credit facility will have a three-year maturity and will be used for general corporate purposes. The bridge loan will have a one-year maturity and will be used to refinance existing debt.
Grindr’s Financial Outlook
The refinancing package is expected to improve Grindr’s financial outlook. The company is hoping to reduce its debt and improve its cash flow. It is also hoping to use the additional funds to invest in new products and services.
JPMorgan’s Involvement
JPMorgan is leading the refinancing package and is providing the $100 million term loan. The bank is also providing the $50 million revolving credit facility and the $50 million bridge loan.
Fortress Investment Group’s Involvement
Fortress Investment Group is providing the $100 million term loan. The loan has a five-year maturity and is secured by Grindr’s assets.
Conclusion
Grindr is working with JPMorgan to refinance a term loan led by Fortress Investment Group. The loan is worth $100 million and is part of a larger refinancing package. The package includes a $100 million term loan, a $50 million revolving credit facility, and a $50 million bridge loan. The refinancing package is expected to improve Grindr’s financial outlook and reduce its debt. JPMorgan is leading the refinancing package and is providing the $100 million term loan, the $50 million revolving credit facility, and the $50 million bridge loan. Fortress Investment Group is providing the $100 million term loan.