Grindr unit signs $350 million secured credit agreement via JPMorgan

By Mary-Katherine Stinson

Lexington, Ky., Nov. 29 – Grindr Capital LLC entered a credit agreement on Nov. 28 totaling $350 million with JPMorgan Chase Bank, NA as administrative agent, according to a notice.

Grindr Inc., Grindr Group LLC and Grindr Gap LLC are the parent guarantors.

The agreement provides for a $300 million senior secured term loan facility and a $50 million senior secured revolving credit facility with a $15 million letter-of-credit sublimit and a $10 million swingline loan sublimit. The company may request an increase of up to $100 million under the revolver.

Borrowings under the agreement, apart from swingline loans, bear interest at SOFR plus an applicable margin ranging from 275 basis points to 325 bps based upon the company’s and subsidiaries’ total net leverage ratio.

Swingline loans bear interest at one-month term SOFR plus 100 bps plus the applicable margin also based on leverage.

A commitment fee based on the unused portion of the revolving facility ranges from 37.5 bps to 50 bps depending on the total net leverage ratio.

There are certain letter-of-credit fees and related fronting fees and other administrative fees.

The term loan facility will amortize on a quarterly basis at 1.25% of the aggregate principal amount outstanding as of the initial closing date of the agreement, beginning March 29, 2024, until the final maturity date on Nov. 28, 2028.

Borrowings may be voluntarily repaid without penalty and reborrowed until maturity. Mandatory prepayments are required under the revolving loans when borrowings and letter-of-credit usage exceed the total revolving commitments of all lenders. Mandatory prepayments are also required in connection with certain asset dispositions and casualty events, in each case, if the dispositions or casualty events exceed certain individual and aggregate thresholds and are not reinvested and in connection with unpermitted debt transactions.

At closing, the term facility was fully drawn, and the company also borrowed $44.4 million under the revolver to repay in full its outstanding obligations under the Fortress Credit Agreement and to pay costs of the new agreement.

Further borrowings may be used for working capital and general corporate purposes, including permitted acquisitions and any other non-prohibited use.

JPMorgan joins Bank of America, NA, Citizens Bank, NA and Silicon Valley Bank, a division of First-Citizens Bank & Trust Co. as joint bookrunners and joint lead arrangers for the agreement.

West Hollywood, Calif.-based Grindr is a location-based social networking and online dating application targeted toward gay, bisexual and transgender people.

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