The filing signals ongoing financial distress — the company has now required at least 11 separate waivers/amendments over the past year. The advance rate cut reduces borrowing base capacity, and the permanent waiver of origination targets suggests continued operational weakness. With the Maturity Date only ~6 months away (Dec 2026), monitor for potential restructuring, refinancing risk, or equity dilution. The lack of disclosed financial figures or guidance makes the near-term outlook highly uncertain.
Price Chart
Executive Summary
Katapult entered into a Third Amendment to its senior secured loan agreement after failing to meet the Minimum Trailing Three-Month Net Originations covenant as of May 31, 2026. The amendment permanently waives the resulting default, removes the Minimum Trailing Three-Month Net Originations covenant going forward, and reduces the Advance Rate from 90% to 85%. The lenders consented to the Parent Reorganization Transaction and Katapult Merger Transaction in connection with the amendment.
Key Facts
- The Credit Parties failed to maintain the Minimum Trailing Three-Month Net Originations covenant as of May 31, 2026, causing a Default/Event of Default.
- The Third Amendment permanently waives that specific Existing Default.
- The Minimum Trailing Three-Month Net Originations covenant is removed from the Loan Agreement.
- The Advance Rate is reduced from 90% to 85%.
- The lenders consent to the Parent Reorganization Transaction and Katapult Merger Transaction is included.
- The loan facility has a total commitment of $110,000,000 ($90M Class A-1 + $20M Class A-2) with a Maturity Date of December 4, 2026.
- Multiple prior waivers were granted dating back to September 2025.
Financial Impact
The advance rate reduction from 90% to 85% reduces borrowing capacity under the $110M facility by approximately $5.5M, tightening liquidity. The removal of the origination covenant eliminates a key performance metric, indicating the company's origination volumes have been insufficient to meet agreed targets.
Risk Factors
- Loan maturity is ~6 months out (December 4, 2026), creating near-term refinancing risk.
- Advance rate reduction from 90% to 85% reduces available liquidity under the facility.
- The multiple successive waivers indicate persistent covenant breaches and lender forbearance; next default could trigger acceleration.
- No financial statements or operational metrics disclosed in this filing to assess current performance.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000950103-26-008473 |
| Document: dp247764_8k.htm | 0000950103-26-008473 |
| Document: 0000950103-26-008473-index-headers.html | 0000950103-26-008473 |
| Document: 0000950103-26-008473-index.html | 0000950103-26-008473 |
| Document: 0000950103-26-008473.txt | 0000950103-26-008473 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 8, 2026 20w ago | 8-K | $0.000800 | awaiting T+5 | — | $7.69 (+961150.01%) |
Jun 8, 2026 20w ago | 25-NSE | $0.000800 | awaiting T+5 | — | $7.69 (−961150.01%) |
Jun 3, 2026 20w ago | 8-K | $0.003900 $0.003900 | · 0.00% | ▼ −2.55% | $7.69 (−197079.49%) |
Apr 16, 2026 27w ago | 8-K | $0.003900 $0.003900 | · 0.00% | ▲ +0.98% | $7.69 (−197079.49%) |
Mar 12, 2026 32w ago | Court Ruling | $0.003900 $0.003900 | · 0.00% | ▼ −1.69% | $7.69 (+197079.49%) |
US Market Status
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