FatPipe refinances $4.5 million Fortis SBA loan with KeyBank term loan
FatPipe entered two KeyBank business loan agreements: a $4.5 million secured term loan, of which about $4.47 million repaid its Fortis Bank SBA loan on October 1, 2026, and a $1.5 million secured revolving line of credit for working capital. The company expects an approximately 110 basis point reduction in its annual borrowing rate, but the loans carry quarterly financial covenants and default provisions that let KeyBank accelerate the debt.
Key points
- Term loan of $4.5 million matures October 1, 2029, with 35 monthly principal payments of $75,000 beginning November 1, 2026.
- Interest rate moves from Prime Rate plus 1.00% to Adjusted Daily SOFR plus 3.00%; the company expects an approximately 110 basis point reduction in its annual borrowing rate.
- Revolving line of credit of $1.5 million matures September 30, 2027; origination fees are $22,500 for the term loan and $7,500 for the revolver.
- Loans are guaranteed by subsidiary FatPipe Technologies, Inc. and secured by substantially all personal property assets, with covenants requiring Total Funded Debt to EBITDA no greater than 2.50 to 1.00 and Fixed Charge Coverage Ratio of at
The filing
Written by AI on Nov 9, 2026, 11:46 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on October 07, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.