Grove Collaborative Replaces Silicon Valley Bank Credit Facilities with New $72MM Term Loan

Grove Collaborative, a sustainable consumer products company, entered into a new loan and security agreement providing for a four-year, $72 million term loan. According to an 8K filed with the SEC, Ocean II PLO LLC, a California limited liability company, is the administrative and collateral agent. With this transaction, Grove also added two capital partners in Structural Capital and Avenue Sustainable Solutions Fund.

Grove will use the new funds to refinance existing debt, as the loan agreement replaces Grove’s existing credit facilities with Silicon Valley Bank, and to fund ongoing business operations. The term loan bears an annual interest at the greater of 15% or Prime plus 7.5%, payable monthly. The principal repayment period commences in July 2025 and the term loan matures in December 2026.

“We are pleased to announce this agreement, which provides greater financial flexibility to our cash and liquidity position,” Stuart Landesberg, co-founder and CEO of Grove, said. “This transaction better positions Grove for long-term success, enabling us to execute against our strategic value creation plan with the goal of achieving profitability in 2024. We are thrilled to have new partners, Structural and Avenue, who deeply understand our business and our mission to drive the consumer products industry to be a positive force for human and environmental health.”

“We are excited to partner with Grove by providing a compelling capital solution. Grove is an innovative leader in the consumer products industry and we look forward to supporting the company’s management team in advancing their vision,” Kai Tse, co-founder and managing partner of Structural Capital, said.

“This transaction, executed on fair terms in a challenging market, speaks to the financial profile of the company and the depth of our partnership with Structural and Avenue’s ESG-oriented Sustainable Solutions Fund,” Sergio Cervantes, CFO of Grove, said. “This transaction aligns our capital structure to our ongoing improvements to become profitable and to our internal operating timelines and gives us the financial backing to weather an extended challenge in market sentiment.”