FatPipe Inc/UT: enters $4,500,000 term loan and $1,500,000 revolver

What happened

• The filing states that on Oct 1, 2026 the Company entered into two Business Loan Agreements with KeyBank National Association: a secured revolving line of credit of up to $1,500,000 (the Revolving Facility) and a secured term loan in the principal amount of $4,500,000 (the Term Loan). The Company used approximately $4,470,000 of the Term Loan proceeds on Oct 1, 2026 to repay in full its Small Business Administration loan with Fortis Bank. The Company issued a press release on Oct 7, 2026 announcing the refinancing and the establishment of the Revolving Facility.

Key details

• The Term Loan is dated Sep 30, 2026, matures Oct 1, 2029 and requires 35 monthly principal payments of $75,000 beginning Nov 1, 2026, plus monthly payments of accrued interest, with remaining principal and accrued unpaid interest due at maturity.
• The Revolving Facility is dated Oct 1, 2026, matures Sep 30, 2027, and requires monthly payments of accrued interest beginning Nov 1, 2026, with all outstanding principal and accrued unpaid interest due at maturity.
• Borrowings under both Credit Facilities bear interest at the Adjusted Daily SOFR Index plus 3.00%; the Fortis Bank loan bore interest at the Prime Rate plus 1.00%. Based on benchmark rates at the time of refinancing, the Company expects an approximately 110 basis point reduction in its annual borrowing rate.
• The Credit Facilities are guaranteed by the Company’s wholly owned subsidiary, FatPipe Technologies, Inc., secured by security interests in substantially all personal property assets (including intellectual property), include affirmative and negative covenants, and require a ratio of Total Funded Debt to EBITDA of no greater than 2.50 to 1.00 and a Fixed Charge Coverage Ratio of 1.20 to 1.00, tested quarterly. The promissory notes provide for an additional 3.00 percentage points of interest upon default. Origination fees are $22,500 (Term Loan) and $7,500 (Revolving Facility).

Why it may matter

• The filing reports Item 1.01 (entry into a material definitive agreement) for the two Business Loan Agreements with KeyBank, Item 1.02 (termination of a material definitive agreement) for the repayment and termination of the Fortis Bank SBA loan on Oct 1, 2026, Item 2.03 (creation of a direct financial obligation) relating to the new debt, and Item 7.01 (Regulation FD disclosure) for the Oct 7, 2026 press release. The filing describes the loan terms, security, covenants and related provisions.

The filing does not show why the insider traded or why the company acted.