secwatch.observer — SEC 8-K summary
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Issuer:     Katapult Holdings, Inc. (KPLT)
CIK:        0001785424
Form:       8-K
Filed at:   2025-09-29T23:59:59+00:00
Accession:  0000950103-25-012458
Event type: debt
Sentiment:  negative
Materiality: 0.75
Item codes: 1.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Katapult enters second limited waiver; lenders can convert up to 100% term loan to common stock at ~$19.52/share
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- Minimum trailing three-month originations covenant breached as of Aug 31, 2025; existing default temporarily waived until Oct 13, 2025.
- Class B Lenders can convert up to 100% of term loan into common stock based on 20-day VWAP (~$19.52 as of Sep 26, 2025).
- Conversion may dilute existing shareholders; lenders include multiple Blue Owl funds (Class A-1, A-2, B).
- Credit Parties release all claims against Agent and Lenders, excluding fraud, gross negligence, or willful misconduct.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1785424/000095010325012458/0000950103-25-012458-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1785424/000095010325012458/dp235143_8k.htm
  HTML page:      https://secwatch.observer/filing/0000950103-25-012458

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer