Katapult Completes Private Placement and Debt Amendment

Paul, Weiss advised the independent directors of Katapult Holdings, Inc. on Katapult’s $65 million private placement of Series A and Series B convertible preferred stock to a subsidiary of Hawthorn Horizon Credit Fund. Proceeds from the transaction were used to repay the company’s senior secured term loan in full, partially prepay its revolving loan and fund the company’s operations. Katapult agreed that Hawthorn would have the right to nominate up to three individuals to Katapult’s board and obtained officer and director support agreements to facilitate the requisite stockholder approvals.

In connection with the financing, Katapult executed a limited waiver and amendment to its existing credit agreement, under which its lender agreed to permanently waive certain covenant defaults and modify covenants going forward.

The Paul, Weiss team was led by corporate partners Laura Turano and Andrew Krause, and included litigation partners Geoffrey Chepiga and Andre Bouchard.