Grindr Partners with JPMorgan for Debt Refinancing to Curb Interest Costs

Grindr Inc. (GRND), the prominent LGBTQ+ dating app, is collaborating with JPMorgan Chase & Co. to refinance a substantial loan initially orchestrated by Fortress Investment Group and other lenders. Aiming to restructure approximately $200 million in debt, Grindr is seeking to transfer this loan to the term loan A sector, which primarily involves banks rather than institutional investors, though the specifics are yet to be confirmed and may be subject to adjustments.

This refinancing effort could potentially reduce Grindr’s interest costs by millions, transitioning from a loan with an 8% margin above a benchmark rate to one with a significantly lower interest rate. The deal is expected to be finalized in the final quarter of the year.

Both JPMorgan and Fortress, the managing agent for the existing loan, have not issued any statements regarding this matter. Similarly, Grindr has not provided any comments when approached.

The move to refinance comes as Grindr faces increasing interest expenses, which have surged in line with rising benchmark rates. For the first half of the year, interest expenses reached $23.7 million, accounting for 20% of its revenue, a steep increase from $6.2 million in the previous year, as reported in company filings.

After going public last year through a special purpose acquisition company at a valuation of $2.1 billion, Grindr’s market capitalization currently stands at just above $1 billion. The company, headquartered in West Hollywood, California, has experienced significant staff changes, with nearly half of its employees departing following the implementation of a mandatory two-day weekly office attendance policy.