đź‘“At a Glance
Borrower: Katapult SPV-1 LLC
Lender: Midtown Madison Management LLC (Agent)
Deal Size: $110.0 million
Structure: Collateralized revolving line of credit
Rate: Variable - SOFR subject to 3.00% floor and credit adjustment spread of 0.10% plus 7.00%
Term: ~17 months
Use of Proceeds: Finance the acquisition of property held for lease
Source: SEC 8-K
đź“·Borrower Snapshot
Sector: Financials
Subsector: Consumer Finance
Ownership: Public
Commercial Stage: Commercial Revenue; Adj. EBITDA +
Business Overview: Katapult is an e‑commerce fintech firm specializing in lease‑to‑own (LTO) financing for non‑prime U.S. consumers. Its fully digital platform integrates with online and in‑store retailers, offering flexible lease-purchase plans via POS, mobile/web app, and virtual credit cards (Katapult Pay/KPay).
⚙️Structure & Terms
Source: SEC 8-K
Commitment: $110.0 million
Maturity: September 1, 2025 or December 4, 2026 if requisite shareholder approval is obtained prior to September 1, 2025
Rate: Variable - SOFR subject to 3.00% floor and credit adjustment spread of 0.10% plus 7.00%
Advance Rate: Variable and ranging between 91% - 99% based on pre-defined advance rate triggers (charge-off percentage ratio; cumulative cash collection percentage ratio; first payment default ratio)
Administration Fee: $12.5k at closing; $12.5k quarterly
Covenants:
- Minimum trailing three-month net originations
- based on grid but starting at $61.0 million and increasing to $80.0 million by November 2026
- Minimum liquidity measured weekly beginning in February 2026
- Beginning at $1.0 million and increasing to $5.0 million
- Term advance rate
- 135% from closing to August 31, 2025, increasing to 140% until full completion of term loan conversion
‍
.jpg)