Katapult Holdings Secures Waiver for Loan Default Enabling Lender Conversion Rights
Katapult Holdings Inc. has entered into a Fourth Limited Waiver to its Amended and Restated Loan and Security Agreement with Midtown Madison Management LLC and other lenders. The waiver, dated October 20, 2025, temporarily addresses Katapult's failure to maintain required minimum trailing three-month originations for August and September 2025. This waiver extends until October 27, 2025, but the existing default is still considered ongoing for conversion rights purposes. As a result, Class B Lenders and their assignees may convert up to 100% of the outstanding term loan into Katapult common stock at a conversion rate based on the company's 20-day volume weighted average price, which was approximately $14.49 as of October 17, 2025.
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