Black Dragon Capital successfully refinanced Grass Valley with a $220 million strategic recapitalization, poised to enhance its market leadership and accelerate growth in innovative media solutions.

Target Overview

Grass Valley, a prominent player in the media production industry, is a portfolio company of Black Dragon Capital. The company has recently completed a successful strategic refinancing of $220 million, led by investment funds managed by Morgan Stanley Private Credit. This recapitalization is aimed at strengthening Grass Valley’s financial position, allowing it to refinance existing debts while enabling the company to further solidify its leadership in the media workflow sector through innovative solutions like the Grass Valley Media Universe (GVMU).

Since coming under the management of Black Dragon Capital in 2020, Grass Valley has undergone a significant transformation. The company has reported impressive financial metrics, including a $77 million increase in adjusted EBITDA, stable revenues despite a reduced SKU count, a 15% rise in gross margins, and a remarkable 33% increase in recurring revenue, complemented by a 59% growth in software and services. This transformation has positioned Grass Valley as a leader in the reimagination of future media workflows.

Industry Overview

The media production industry remains dynamic and is currently navigating various transformative trends that are reshaping the landscape. In the United States, which is recognized as a global media hub, there is a growing demand for innovative solutions that can enhance