Katapult Holdings Announces Merger with CCFI & Aaron’s; New Leadership

What Happened

• Katapult Holdings, Inc. completed the previously announced business combination with CCF Holdings LLC (CCFI) and Aaron’s on August 11, 2026. After the transactions, there are approximately 87.4 million shares of Katapult common stock outstanding on a fully diluted basis. Former CCFI equityholders own ~79.8%, former Aaron’s equityholders ~14.1%, and former Katapult stockholders ~6.1%. Katapult common stock continues to trade on Nasdaq under the symbol “KPLT.”
• Concurrent with the Closing, Katapult-related borrowers entered new secured term loan facilities: a TopCo facility providing up to $200.0 million in senior secured term loans (approximately $122.0 million funded at closing; up to $78.0 million delayed draw), and a MidCo facility providing approximately $75.0 million (funds used to repurchase preferred stock). The filings also describe amendments and joinders to existing asset-based facilities and an amendment to the TMX ABL credit facility.

Key Details

• Closing date and ownership: Merger closed Aug 11, 2026; ~87.4M fully diluted shares outstanding; ownership split ~79.8% CCFI, ~14.1% Aaron’s, ~6.1% legacy Katapult.
• TopCo Term Loan: up to $200.0M (initial ~$122.0M funded, ~$78.0M delayed draw available through Aug 11, 2028), interest 15.0% cash + 5.0% PIK (PIK capitalizes to principal); maturity is the earlier of Aug 11, 2029 or acceleration after default; first‑priority security interest and customary covenants apply.
• MidCo Term Loan: ~$75.0M facility (used to repurchase 65,000 preferred shares issued to Hawthorn), interest 15.0% (PIK permitted with agent approval), maturity Nov 3, 2030; guaranteed and secured with customary terms.
• Leadership & compensation: Board expanded to 10 directors; Kyle Hanson named Executive Chairman and Jennifer Baldock Lead Director. Cory Miller named CEO; Russell Falkenstein named CFO; William Baker named President; Douglass Noe named Chief Accounting Officer. Equity awards granted at closing (Hanson $4.0M, Miller $3.3M, Falkenstein $2.5M, Baker $2.5M) with a two‑year vesting schedule; an Executive Severance Pay Plan was adopted with specified severance and change‑in‑control benefits.

Why It Matters

• Control and governance: The closing materially changes control and leadership—former CCFI equityholders now hold a large majority and the board and senior management have been substantially reconstituted. That can drive changes in strategy, operations and priorities going forward.
• Financing and cash flow implications: The company took on significant new secured debt (TopCo facility up to $200M and a $75M MidCo loan) with high interest rates (15% cash + PIK on TopCo; 15% on MidCo). The PIK feature increases reported debt over time because unpaid interest is capitalized to principal. Investors should note the maturity profiles (TopCo 2029, MidCo 2030) and covenant requirements that may affect liquidity and flexibility.
• Equity and incentives: Substantial equity awards and a new severance plan align new leaders’ pay with performance and retention but also represent potential dilution and future compensation expense.

Keywords: merger, acquisition, CEO, CFO, board change, term loan, debt financing, PIK interest, equity awards, Nasdaq (KPLT).