BERLIN, March 14, 2022 /PRNewswire/ — Spark Networks SE (NASDAQ:LOV), a leading social dating platform for meaningful relationships, today announced that the March 11, 2022 it successfully completed the refinancing of its existing term and revolving loan facility with borrowings under a new term loan facility with MGG Investment Group LP.
The new term loan facility has a principal balance of $100 million maturing in 2027. Loans under the new term loan facility will bear interest at a rate equal to 1-month LIBOR plus 750 basis points or the benchmark rate plus 650 basis points, as applicable. . A portion of the proceeds from the new term loan facility was used to repay $85.6 million term loan facility and pay the fees and expenses associated with the refinancing transaction.
By taking advantage of extended due dates and improved covenant flexibility, Spark will have more resources to invest in the business and drive sustainable subscription revenue growth. The company plans to grow awareness, engagement and subscribers by leveraging its strong brands, unique and enhanced user experiences, global scale online dating platform and budget annual marketing of more than 110 million dollars.
“Today’s announcement is another vote of confidence in Spark Networks and the opportunity we have before us to drive subscriber and revenue growth in the vast and growing online dating market,” said declared David Clark, CFO of Spark Networks. “The successful refinancing of our term loan facility will enhance our ability to invest for growth profitably and strengthen our financial flexibility.”
Spark generated $33.0 million adjusted and cashed EBITDA $17.0 million indebted in 2021.
Moelis & Company LLC acted as exclusive financial advisor and placement agent to Spark Networks in connection with the transaction. Morrison & Foerster LLP acted as legal counsel to Spark in connection with the new credit facility.
About Spark Networks SE
Spark Networks SE (NASDAQ: LOV) is a leading social dating platform for meaningful relationships focused on more than 40 demographics and faiths. Spark’s expanded portfolio of premium and freemium dating apps includes Zoosk, EliteSingles, SilverSingles, christian mingle, Jdate and JSwipe, among others. Spark is headquartered in Berlin, Germanywith offices at new York and Utah.
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SOURCE Spark Networks SE