AppLovin refinances convertible note facility from Hontai

AppLovin, a mobile gaming platform, has secured a credit facility of an undisclosed sum to refinance the convertible note facility it received from Hontai Capital. No financial terms were disclosed. As a result of the transaction, Hontai will retain a small equity stake in AppLovin. Bank of America Merrill Lynch is serving as financial adviser to AppLovin while CV Capital is doing likewise to Hontai Capital on the transaction. Last month, KKR said it was buying a stake in AppLovin for $400 million.

PRESS RELEASE

PALO ALTO, Calif.–(BUSINESS WIRE)–AppLovin, a comprehensive mobile gaming platform, announced today it has raised a significant credit facility from U.S.-based investors to fully refinance the convertible note facility that AppLovin received from Hontai Capital. Hontai will retain a small equity stake in AppLovin.

Founded in 2012, AppLovin has since grown into a diverse global company that offers solutions for mobile gaming and mobile growth, and works with close to 90 percent of the top mobile gaming companies from around the world. It reaches over 300 million daily active users and drives over one billion installs for gaming companies annually. The company is well positioned for continued growth, with mobile gaming projected to be a $70.3 billion industry in 2018, growing over 25 percent year-over-year, according to Global Games Market Report. Last month, it announced its mobile gaming division, Lion Studios, and closed a $400 million investment from investment firm KKR.

“Hontai Capital has been an instrumental partner in China, and their funds have helped fuel our product innovation,” said Adam Foroughi, CEO and co-founder at AppLovin. “They have been key to our global growth, and we look forward to continuing our successful partnership with them.”

“We’ve been thrilled with the outcome of our deal with AppLovin,” said Tony Ma, CEO & Managing Partner at Hontai Capital. “It allowed for a strong entrance into the U.S. market for our new fund. We look forward to continuing our work with the AppLovin team.”

Hontai Capital plans to launch its first U.S. fund this year. This fund will focus on TMT (technology, media, and telecommunications) companies in AI, internet of things, mobility, finance technology, new consumer, new media, and SaaS.

Bank of America Merrill Lynch is serving as financial advisor to AppLovin, and CV Capital is serving as exclusive financial advisor to Hontai Capital on the transaction.

About AppLovin
AppLovin offers a comprehensive platform that connects developers of all sizes to billions of global users each month so they can get discovered. Founded in 2012, AppLovin has since grown into a diverse global company that offers solutions for mobile gaming and mobile growth. The company is focused on helping both indie and established mobile game developers, with the expertise and insights they need to monetize, publish, and grow their businesses—all in one place. This approach has proven to fuel the entire mobile development ecosystem and help developers reach and exceed their goals. Learn more at www.applovin.com.

About Hontai Capital
Hontai Capital is a leader in the private equity and venture capital investment sector in China. It has built up a strong team with diversified backgrounds such as top venture capitalists, investment banks and successful startups. Leveraging its industrial vision, insights and global networks, team members of Hontai Capital have played lead roles in investments of several global top-tier companies, including AppLovin, Mediapro, Nio, Pony.AI, Tiger Trade, Dingxiang Technology, Funplus, Shanda Games and CMGE.