FatPipe (NASDAQ: FATN) Refinances Existing Debt and Reduces Borrowing Costs

Benchmark rates at refinancing imply an approximately 110 basis point reduction in the annual borrowing rate.

Rhea-AI Summary

FatPipe (NASDAQ: FATN) refinanced its existing Fortis Bank SBA loan through a $4.5 million secured term loan with KeyBank National Association.

The term loan matures in October 2029 and bears interest at adjusted daily SOFR, a benchmark rate, plus 3.00%, versus Prime Rate plus 1.00% previously. Benchmark rates at refinancing imply an approximately 110 basis point reduction in the annual borrowing rate; actual savings will vary with benchmark rates and outstanding principal. FatPipe also established a $1.5 million secured revolving line of credit for working capital, maturing in September 2027 and bearing interest at adjusted daily SOFR plus 3.00%.

2 points · 0 major

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Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointAnnual borrowing rate reduced by approximately 110 basis points based on benchmark rates at refinancing.
• Moderate pointWorking-capital funding access added through a $1.5 million revolving line of credit. 2% of market cap

Negative

• Moderate pointReplacement debt is a $4.5 million secured term loan, maturing in October 2029. 6.1% of market cap
• Minor pointRevolving credit is secured, matures in September 2027, and bears adjusted daily SOFR plus 3.00%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Term-loan interest remains variable at adjusted daily SOFR plus 3.00%; actual savings vary with rates and outstanding principal.

Key Figures

Secured term loan: $4.5 million Revolving line of credit: $1.5 million Term loan interest rate: Adjusted daily SOFR + 3.00% +3 more

Secured term loan

$4.5 million

Refinancing of the existing Fortis Bank SBA loan

Revolving line of credit

$1.5 million

Secured facility for working capital

Term loan interest rate

Adjusted daily SOFR + 3.00%

New secured term loan

Previous loan interest rate

Prime Rate + 1.00%

Previous facility

Term loan maturity

October 2029

New secured term loan

Revolving line maturity

September 2027

Secured revolving line of credit

Key Terms

sofr, basis point, sd-wan

3 terms

sofr financial

"The new term loan bears interest at adjusted daily SOFR plus 3.00%"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

basis point financial

"this represents an approximately 110 basis point reduction"

A basis point is a unit equal to one one‑hundredth of a percent (0.01%), used to describe very small changes in interest rates, bond yields, fees or other percentage figures. Think of it like a single dollar change on $10,000: tiny by itself but meaningful when applied to large sums or repeated over time, so investors use basis points to track and compare small but financially significant moves precisely.

View in glossary

sd-wan technical

"pioneered the concept of software-defined wide area networking (SD-WAN)"

SD‑WAN is a technology that uses software to control and direct wide-area network traffic between offices, data centers and cloud services instead of relying solely on traditional hardware routers. Think of it as a smart traffic manager that chooses the fastest, cheapest or safest route for each data flow, improving performance, cutting telecom costs and simplifying upgrades. Investors care because it can lower operating expenses, enable faster cloud adoption and create steady demand for networking and security services.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SALT LAKE CITY, UT / ACCESS Newswire / October 7, 2026 / FatPipe, Inc. (NASDAQ:FATN), a provider of enterprise networking and cybersecurity solutions, today announced the refinancing of its existing Fortis Bank SBA loan through a $4.5 million secured term loan with KeyBank National Association. The Company also established a $1.5 million secured revolving line of credit for working capital.

The new term loan bears interest at adjusted daily SOFR plus 3.00%, compared with Prime Rate plus 1.00% under the previous facility. Based on benchmark rates at the time of refinancing, this represents an approximately 110 basis point reduction in the Company's annual borrowing rate. Actual interest savings will vary with benchmark rates and outstanding principal balances.

The term loan matures in October 2029. The revolving line of credit matures in September 2027 and bears interest at adjusted daily SOFR plus 3.00%.

About FatPipe, Inc.

FatPipe, Inc. pioneered the concept of software-defined wide area networking (SD-WAN) and hybrid WANs that eliminate the need for cooperation from ISPs and allow enterprises and service providers to control multi-link network traffic. FatPipe offers a single-stack networking and cybersecurity platform backed by 13 U.S. patents related to multipath and software-defined networking. FatPipe products are sold through more than 200 resellers worldwide.

For more information, please visit FatPipe's website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements regarding the Company's growth strategy, financial strategy, potential acquisitions, strategic opportunities, recurring revenue and expectations regarding future performance. These statements are based on management's current expectations and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied by such statements.

These risks and uncertainties include those described in FatPipe's filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date of this press release, and FatPipe undertakes no obligation to update or revise such statements except as required by law.

Company Contact

Vikrant Ragula
V.P. of Corp Dev and Investor Relations
FatPipe, Inc.
+1 801.683-5656 x 1140
Investor.ir@fatpipeinc.com

SOURCE: FatPipe Networks

View the original press release on ACCESS Newswire

FAQ

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How much did FatPipe reduce its borrowing rate through the refinancing?

FatPipe reduced its annual borrowing rate by approximately 110 basis points, based on benchmark rates at refinancing. The new term loan bears interest at adjusted daily SOFR plus 3.00%, compared with Prime Rate plus 1.00% previously. Actual interest savings will vary with benchmark rates and outstanding principal balances.

What are the amounts and maturity dates of FatPipe's new credit facilities?

The $4.5 million secured term loan matures in October 2029, while the $1.5 million secured revolving line of credit matures in September 2027. The term loan refinanced the existing Fortis Bank SBA loan, and the revolving facility is for working capital.