Opening the filing
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Fatpipe Inc
8-K
Emerging growth company ☒ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01. Entry into a Material Definitive Agreement.
On October 1, 2026, FatPipe, Inc. (the “Company”) entered into two Business Loan Agreements with KeyBank National Association (“KeyBank”). The first, dated as of October 1, 2026, provides for a secured revolving line of credit of up to $1.5 million (the “Revolving Facility”). The second, dated as of September 30, 2026, provides for a secured term loan in the principal amount of $4.5 million (the “Term Loan” and, together with the Revolving Facility, the “Credit Facilities”).
The Credit Facilities are evidenced by separate promissory notes and related security documents and guaranties (collectively, the “Loan Documents”).
The Company obtained the Term Loan to refinance its existing Small Business Administration loan with Fortis Bank and reduce its borrowing costs. On October 1, 2026, approximately $4.47 million of the Term Loan proceeds were used to repay in full the outstanding balance of the Fortis Bank loan. The Fortis Bank loan bore interest at the Prime Rate plus 1.00%, while borrowings under both Credit Facilities bear interest at the Adjusted Daily SOFR Index, as defined in the applicable promissory note, plus 3.00%. Based on the applicable benchmark rates at the time of refinancing, the Company expects an approximately 110 basis point reduction in its annual borrowing rate. Actual interest savings will depend on changes in benchmark rates and outstanding principal balances. The Revolving Facility is available for working capital, subject to the terms and conditions of the Loan Documents.