Grove Collaborative stock climbs over 20% after the bell on $72M term loan
Grove Collaborative (GROV) stock climbed 20.6% after the bell as the firm announced a new four-year $72M term loan from investors Structural Capital and Avenue Sustainable...
Grove Collaborative (NYSE:GROV) stock climbed 20.6% after the bell as the firm announced a new four-year $72M term loan from investors Structural Capital and Avenue Sustainable Solutions Fund. The funds will be used to refinance existing debt and fund operations. The term loan bears annual interest at the greater of 15% or prime plus 7.5%, payable monthly.
The principal repayment period starts in July 2025 and the term loan matures in December 2026. "This transaction aligns our capital structure to our ongoing improvements to become profitable and gives us the financial backing to weather an extended challenge in market sentiment," said CFO Sergio Cervantes. The new loan deal replaces Grove's (GROV) existing credit facilities.
Grove (GROV) issued to Structural Capital Investments III and certain affiliates 3.4M class A shares and 1.5M class A shares to to Avenue. Last week, the company said it received a non-compliance notice from NYSE.