(Bloomberg) -- Dating app Grindr Inc. estimates trimming $17 million in interest expenses next year after refinancing a costly private loan, the company said in a statement. 

The LGBTQ+ dating app secured a $300 million term loan A and $50 million revolving credit facility. The new facilities have a margin of 275 to 325 basis points over the Secured Overnight Financing Rate, based on the company’s leverage, according to the statement. Term loan A is financing that is held by banks and carries a lower margin than syndicated loans sold to investors.

The old loan had a margin of approximately 8% over the benchmark and included Fortress Investment Group as a lender. In the first nine months of this year, Grindr reported $35.7 million in net interest expense — compared with $11 million in the same time period last year — as benchmark rates surged, according to regulatory filings. 

“One of the reasons to go public was to secure much better and cheaper debt,” Grindr’s Chief Executive Officer George Arison said in an interview. “Now we’ve been able to do that in a really tough rate environment where term loan As were not getting done.”

Earlier in the year, banks were unwilling to take on more risk as previous buyout debt that was supposed to be syndicated remained stuck on their balance sheets.

When starting the process in July, the company had explored the syndicated-loan market, but received enough interest from lenders to place the debt in the bank-loan market, Arison said. Bloomberg had reported earlier in November that the company was in talks with JPMorgan Chase & Co. to refinance the debt. 

Lenders on the new facilities include JPMorgan, Bank of America Corp., Citizens Financial Group Inc., Silicon Valley Bank, as part of First Citizens Bank, and Capital One Financial Corp.

Arison said that financial backing from big banks wouldn’t have been possible 10-15 years ago. 

“My message to people has been it’s one thing to say things and another thing to lean in,” he said. “The banks supporting us are doing more than leaning in and are doing the work to be good partners.” 

--With assistance from Carmen Arroyo.

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