Katapult refinanced its existing credit facility by entering into an Amended and Restated Loan and Security Agreement, which includes a $110 million upsized revolving credit facility and a $32.7 million term loan, both continuing from prior agreements. The new revolving facility features $20 million in incremental commitments and offers increasing advance rates tied to stockholder approval milestones, while the term loan carries an 18% PIK interest rate and may convert to equity upon meeting certain conditions.
đAt a Glance
Borrower: Katapult SPV-1 LLC
Lender: Midtown Madison Management LLC (Agent)
Deal Size: $110.0 million
Structure: Collateralized revolving line of credit
Rate: Variable - SOFR subject to 3.00% floor and credit adjustment spread of 0.10% plus 7.00%
Term: ~17 months
Use of Proceeds: Finance the acquisition of property held for lease
Source: SEC 8-K
đˇBorrower Snapshot
Sector: Financials
Subsector: Consumer Finance
Ownership: Public
Commercial Stage: Commercial Revenue; Adj. EBITDA +
Business Overview: Katapult is an eâcommerce fintech firm specializing in leaseâtoâown (LTO) financing for nonâprime U.S. consumers. Its fully digital platform integrates with online and inâstore retailers, offering flexible lease-purchase plans via POS, mobile/web app, and virtual credit cards (Katapult Pay/KPay).
âď¸Structure & Terms
Source: SEC 8-K
Commitment: $110.0 million
Maturity: September 1, 2025 or December 4, 2026 if requisite shareholder approval is obtained prior to September 1, 2025
Rate: Variable - SOFR subject to 3.00% floor and credit adjustment spread of 0.10% plus 7.00%
Advance Rate: Variable and ranging between 91% - 99% based on pre-defined advance rate triggers (charge-off percentage ratio; cumulative cash collection percentage ratio; first payment default ratio)
Administration Fee: $12.5k at closing; $12.5k quarterly
Covenants:
Minimum trailing three-month net originations
based on grid but starting at $61.0 million and increasing to $80.0 million by November 2026
Minimum liquidity measured weekly beginning in February 2026
Beginning at $1.0 million and increasing to $5.0 million
Term advance rate
135% from closing to August 31, 2025, increasing to 140% until full completion of term loan conversion