Katapult Holdings Enters Limited Waiver To Loan Agreement; Waiver Of Existing Default Continued Until October 13, 2025

Author: Benzinga Newsdesk | September 29, 2025 04:15pm

On September 29, 2025, Katapult Holdings, Inc. (the "Company") entered into the Limited Waiver (the "Second Limited Waiver") to our Amended and Restated Loan and Security Agreement, dated as of June 12, 2025 (as amended, amended and restated, supplemented, revised, or otherwise modified from time to time, including pursuant to that certain Limited Waiver dated September 15, 2025(the "First Limited Waiver"), the "Loan Agreement"), by and among Katapult SPV-1 LLC, Katapult Group, Inc., the Company (each a "Credit Party" and, together, the "Credit Parties"), Midtown Madison Management LLC, as administrative, payment and collateral agent and lender, and the lenders party thereto (the "Lenders") in response to the Credit Parties' failure to maintain Minimum Trailing Three-Month Originations as of the last business day of the calendar month ended August 31, 2025 as required by the Loan Agreement which was originally temporarily waived in the First Limited Waiver. The Second Limited Waiver, among other things, temporarily continues the waiver of the Existing Default (as defined in the Second Limited Waiver) until October 13, 2025. Notwithstanding the waiver of the Existing Default pursuant to the Second Limited Waiver, the Existing Default is deemed to have occurred and be continuing for purposes of the Conversion Rights (as defined in the Loan Agreement) and therefore the Class B Lenders (as defined in the Loan Agreement) shall be entitled, at any time on or after the date hereof, to convert up to one hundred percent (100%) of the amount outstanding under the Term Loan (as defined in the Loan Agreement) into shares of common stock, par value $0.0001 per share of the Company ("Common Stock"), at the Conversion Rate (as defined in the Loan Agreement). The number of shares of Common Stock issuable upon exercise of the Conversion Rights is calculated on the basis of the average of the daily volume weighted average prices of the Common Stock for the twenty (20) consecutive trading days (the "20-day VWAP") ending on the date of conversion, subject, in certain cases, to a specified discount. As of the date hereof, the 20-day VWAP through the last completed trading day of September 26, 2025 is approximately $19.52.

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