---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-22-033443"
form_type: "8-K"
ticker: "SURG"
cik: "0001392694"
company_name: "SurgePays, Inc."
filed_at: "2022-11-23T23:59:59+00:00"
generated_at: "2026-06-21T13:21:19.027978+00:00"
event_type: "debt"
sentiment: "positive"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# SurgePays closes $25M senior secured credit facility; $15M funded at closing

## Summary
- Non-dilutive installment sale agreement with ACF V; no warrants or stock issuance.
- $15M funded at closing; total facility $25M through Nov 2024.
- Devices purchased at cost plus 9.85% fee, payable in 9 monthly installments; fee adjusts with SOFR >3%.
- Secured by first-priority lien on Purchaser's assets; includes financial covenants on subscribers, liquidity, EBITDA.
- CEO says facility allows cash-flow positive growth; throttled sales awaiting funding.

## SEC filing metadata
- accession: 0001493152-22-033443
- form_type: 8-K
- ticker: SURG
- cik: 0001392694
- company_name: SurgePays, Inc.
- filed_at: 2022-11-23T23:59:59+00:00
- event_type: debt
- sentiment: positive
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 1.01, 2.03, 8.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1392694/000149315222033443/0001493152-22-033443-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1392694/000149315222033443/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-22-033443
- JSON: https://secwatch.observer/filing/0001493152-22-033443.json
- Plain text: https://secwatch.observer/filing/0001493152-22-033443.txt

## Key facts
- Debt Financings
  SurgePays, Inc. incurred credit facility of up to twenty-five million dollars ($25,000,000) with Affordable Connectivity Financing V Limited Liability Company at 9.85% fee maturing November 17, 2024.
  - Instrument: credit facility
  - Principal: up to twenty-five million dollars ($25,000,000)
  - Counterparty: Affordable Connectivity Financing V Limited Liability Company
  - Rate: 9.85% fee
  - Maturity: November 17, 2024
  - Event: incurrence
  source text: The Seller shall make available to Purchaser up to twenty-five million dollars ($25,000,000) in credit through November 17, 2024 (the “Maturity Date”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1392694/000149315222033443/0001493152-22-033443-index.htm
- Material Agreements
  SurgePays, Inc. entered into Paying Agent Agreement with Ivy Dallas Funding, LLC valued at Paying Agent controls and administers a cash deposit account for receiving ACP and California Lifeli (effective 2022-11-17).
  - Action: entry
  - Counterparty: Ivy Dallas Funding, LLC
  - Value: Paying Agent controls and administers a cash deposit account for receiving ACP and California Lifeli
  - Effective: 2022-11-17
  source text: In connection with the entrance into the Agreement, on November 17, 2022, the Seller, the Purchaser, and Ivy Dallas Funding, LLC (the “Paying Agent”) entered into the Paying Agent Agreement (the “Agent Agreement”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1392694/000149315222033443/0001493152-22-033443-index.htm
- Material Agreements
  SurgePays, Inc. entered into Installment Sale Agreement with Affordable Connectivity Financing V Limited Liability Company valued at Up to $25,000,000 credit facility; initial $15,000,000 drawn; 9.85% profit margin; payable in 9 equa (effective 2022-11-17).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: Affordable Connectivity Financing V Limited Liability Company
  - Value: Up to $25,000,000 credit facility; initial $15,000,000 drawn; 9.85% profit margin; payable in 9 equa
  - Effective: 2022-11-17
  source text: On November 17, 2022, SurgePays, Inc. (the “Company”), two wholly-owned subsidiaries of the Company (SurgePhone Wireless LLC and Torch Wireless, collectively, the “Purchaser”) and Affordable Connectivity Financing V Limited Liability Company (the “Seller”) (an entity affiliated with Horizon Capital LLC) entered into an Installment Sale Agreement (the “Agreement”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1392694/000149315222033443/0001493152-22-033443-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.