Kodiak AI Announces Refinancing of Senior Debt Facility

Rhea-AI Summary

Kodiak AI (Nasdaq: KDK) completed a new $30.0 million senior secured term loan with Horizon Technology Finance, drawn at closing, that replaces its prior facility.

The facility lowers the interest spread by 200 basis points, sets interest at prime + 3.50% with a prime floor of 6.50% (implying a minimum rate of 10.00%), extends the maturity to Jan 1, 2030, and establishes an interest-only period Feb 1, 2026–Jul 1, 2028 followed by 18 monthly amortizing payments beginning Aug 1, 2028.

Prepayment premiums are 2.0% if prepaid within 24 months and 1.0% thereafter. The company said the transaction increases liquidity, reduces near-term cash outflows, and extends its cash runway to support strategic priorities.

Positive

• New senior secured facility of $30.0M
• Interest spread reduced by 200 bps
• Maturity extended to Jan 1, 2030
• Interest-only payments until Jul 1, 2028
• Entire $30.0M drawn at closing

Negative

• Loan is senior secured, implying collateral requirements
• Effective minimum interest rate of 10.00% due to prime floor
• Principal amortization begins Aug 1, 2028 with 18 monthly payments
• Prepayment premium of 2.0% within 24 months

News Market Reaction – KDK

-0.82%

1 alert

-0.82% News Effect

-$16M Valuation Impact

$1.98B Market Cap

0.6x Rel. Volume

On the day this news was published, KDK declined 0.82%, reflecting a mild negative market reaction. This price movement removed approximately $16M from the company's valuation, bringing the market cap to $1.98B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Debt facility size: $30.0 million Interest rate spread: Prime rate + 3.50% Prime rate floor: 6.50% +5 more

8 metrics

Debt facility size $30.0 million Aggregate principal amount of senior secured term loan facility

Interest rate spread Prime rate + 3.50% Interest rate on Term Loans, with prime floor of 6.50%

Prime rate floor 6.50% Minimum prime rate used to calculate interest on Term Loans

Interest reduction 200 basis points Reduction in interest rate versus previous debt facility

Interest-only period start February 1, 2026 Beginning of monthly interest-only payments on Term Loans

Interest-only period end July 1, 2028 End of interest-only payment period before principal amortization

Loan maturity date January 1, 2030 Final maturity date of Term Loans

Prepayment premiums 2.0% then 1.0% Prepayment premium within first 24 months, then after 24 months

Market Reality Check

Price: $8.30 Vol: Volume 694,339 is below t...

low vol

$8.30 Last Close

Volume Volume 694,339 is below the 20-day average of 1,199,103, suggesting a moderate participation level ahead of this refinancing news. low

Technical Price at 10.92 is trading above the 200-day MA of 7.93 and within 3.79% of the 52-week high 11.35.

Peers on Argus

No peers in the Services-computer Integrated Systems Design sector were flagged ...

No peers in the Services-computer Integrated Systems Design sector were flagged in the momentum scanner and no same-day peer headlines were recorded, indicating this move appears company-specific rather than sector-driven.

Historical Context

5 past events · Latest: Dec 18 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 18	Commercial AI partnership	Positive	+6.5%	Verizon 5G/IoT agreement to support Kodiak Driver connectivity and operations.
Nov 12	Earnings and operations	Positive	+0.6%	First public quarter with strong cash balance and driverless trucking metrics.
Nov 04	Technology partnership	Positive	-4.1%	Expanded ZF partnership for 100 redundant steering systems for driverless trucks.
Oct 22	Earnings announcement	Neutral	-5.0%	Scheduled date and call details for third quarter 2025 results release.
Oct 16	Safety performance	Positive	-8.5%	Top VERA safety score among 1,000+ fleets for Kodiak’s self-driving trucks.

Pattern Detected

Recent news often drew mixed reactions: some strategic and AI partnership updates saw gains, while other positive or neutral developments coincided with notable selloffs.

Recent Company History

This announcement follows a series of operational and strategic milestones for Kodiak AI. Since Oct 16, 2025, the company highlighted top safety scores, an upcoming earnings call, expanded steering partnerships, its first public-company quarterly report with $146.2 million in cash, and a commercial agreement with Verizon to support 24/7 driverless operations. Past AI-focused announcements produced both gains and pullbacks, so this refinancing fits into a pattern of strengthening operations and technology while market reactions have remained inconsistent.

Market Pulse Summary

This announcement refinanced Kodiak’s debt into a new $30.0 million senior secured term loan that cu...

Analysis

This announcement refinanced Kodiak’s debt into a new $30.0 million senior secured term loan that cuts interest by 200 basis points, introduces an interest-only period from 2026 to 2028, and extends maturity to 2030. In the context of recent AI partnerships and strong operational metrics, the deal reinforces liquidity and flexibility. Investors may watch future filings, cash trends, and further AI-commercialization updates to gauge how effectively this capital supports growth.

Key Terms

senior debt facility, senior secured term loan facility, basis points, interest-only payments, +2 more

6 terms

senior debt facility financial

"Announces Refinancing of Senior Debt Facility"

A senior debt facility is a major loan or credit line that has first claim on a company’s cash and assets if the company can’t pay its bills. Investors care because this priority makes senior debt less risky than other loans or bonds, affecting the company’s borrowing cost and how losses are shared in distress — like a first mortgage that gets paid before other claims.

senior secured term loan facility financial

"provides for a senior secured term loan facility in an aggregate principal"

A senior secured term loan facility is a type of borrowed money that a company takes out, which is backed by its valuable assets like property or equipment. Because it is secured by these assets and ranks higher in repayment priority, it is considered safer for lenders and typically offers lower interest rates. For investors, it provides a relatively stable and priority claim on the company's assets if it encounters financial difficulties.

basis points financial

"reduces interest rate by 200 basis points, and extends debt maturity"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

interest-only payments financial

"repayable in monthly interest-only payments from February 1, 2026 until"

A loan payment plan where the borrower pays only the interest charge for a set period, leaving the original loan amount unchanged until later. For investors, this matters because it can boost short-term cash flow and lower default risk early on, but it also concentrates repayment or raises future payments later, which can increase credit and refinancing risk for lenders and holders of related securities—think of a lease that postpones paying down the car’s price.

prime rate financial

"accrue interest at a rate equal to the prime rate plus 3.50%"

The prime rate is the interest rate banks typically charge their most creditworthy customers for short-term loans and serves as a common baseline for many other interest rates. Think of it as a price tag for borrowing: when the prime rate rises, costs for business loans, mortgages and consumer credit usually go up, which can slow spending, squeeze profits and influence stock prices and interest-sensitive sectors.

prepayment premium financial

"may prepay all of the outstanding Term Loans, subject to a prepayment premium"

A prepayment premium is a fee a borrower pays when they pay off a loan or debt earlier than agreed, like an early-termination charge on a phone contract. For investors, it affects the timing and amount of cash they receive from loans or mortgage-backed securities, changing expected returns and reinvestment plans because early repayment can return principal sooner or come with extra compensation.

AI-generated analysis. Not financial advice.

• New, increased $30M debt facility reduces interest rate by 200 basis points, and extends debt maturity from 2026 to 2030
• New financing further extends Kodiak’s cash runway, enabling the Company to more effectively deliver on its strategic priorities
• Transaction strengthens Kodiak’s liquidity position and provides enhanced financial flexibility
  
  

MOUNTAIN VIEW, Calif., Dec. 31, 2025 (GLOBE NEWSWIRE) -- Kodiak AI, Inc. (“Kodiak” or the “Company”) (Nasdaq: KDK), a leading provider of AI-powered autonomous driving technology, today announced the completion of the establishment of a new debt facility with Horizon Technology Finance Corporation (the “Lender”) (Nasdaq: HRZN) as noted in a Form 8-K that was filed today with the SEC. Compared to Kodiak’s previous debt facility, the terms of the new facility provide additional capital, lower interest rates by 200 basis points, extend maturity, and reduce cash outflow and will provide Kodiak with improved liquidity and increased flexibility to operate and scale its business.

"The favorable terms of our debt facility will allow us to achieve several key objectives for our company and our shareholders,” said Don Burnette, Founder and CEO, Kodiak. “This strengthens the Company’s financial position by increasing debt capacity, lowering the interest rate, eliminating near-term principal payments, and extending the debt maturity. Overall, these changes result in reduced near-term cash outflows, improved liquidity, and enhanced ability to execute on strategic priorities. The transaction also reflects Horizon’s continued confidence in Kodiak's business model and performance.”

The venture loan and security agreement (the “Loan Agreement”) provides for a senior secured term loan facility in an aggregate principal amount of up to $30.0 million (collectively, the “Term Loans”), all of which was drawn at the closing.

Borrowings under the Loan Agreement accrue interest at a rate equal to the prime rate plus 3.50% with the prime rate having a floor of 6.50%. The Term Loans are repayable in monthly interest-only payments from February 1, 2026 until July 1, 2028 (the “Interest-Only Payment Period”). After the expiration of the Interest-Only Payment Period, beginning on August 1, 2028, the Term Loans will be repayable in 18 equal monthly payments of principal and accrued interest until maturity. The Term Loans will mature on January 1, 2030 (the “Maturity Date”).

At the Borrowers’ option, the Borrowers may prepay all of the outstanding Term Loans, subject to a prepayment premium equal to (a) 2.0% of the Term Loans being prepaid if the prepayment occurs during the 24 months following the Closing Date; and (b) 1.0% of the Term Loans being prepaid if the prepayment occurs after the 24 month anniversary of the Closing Date.

For additional details on the terms and conditions of the Loan Agreement please refer to the Form 8-K that was filed with the SEC and is available at https://investors.kodiak.ai/.

Forward Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, each as amended, including Kodiak’s expectations relating to its future financial position and business strategy and plans. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “forecast,” “intend,” “expect,” “may,” “plan,” “potential,” “project,” “seek,” “should,” “will,” “would” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding: Kodiak’s expectations relating to its future financial position and business strategy and plans. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Kodiak’s management and are not predictions of actual performance. These forward-looking statements are not intended to serve as, and must not be relied upon by any investors as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Kodiak. These forward-looking statements are subject to a number of risks and uncertainties, including changes in business, market, financial, political and legal conditions; the rapid evolution of autonomous vehicle technology and flaws or errors in Kodiak’s solutions or flaws in or misuse of autonomous vehicle technology in general; risks related to the rollout of Kodiak’s business and the timing of expected business milestones; the effects of competition on Kodiak’s business; supply shortages in the materials necessary for the production of the Kodiak Driver; risks related to working with third-party manufacturers for key components of the Kodiak Driver; risks related to the retrofitting of Kodiak’s vehicles by third parties; the termination or suspension of any of Kodiak’s contracts or the reduction in counterparty spending; delays in Kodiak’s operational roadmap with key partners and customers; and Kodiak’s ability to raise capital in the future. Additional information concerning these and other factors that may impact such forward-looking statements can be found in filings by Kodiak with the Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov. If any of these risks materialize or any assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Kodiak may not presently know or that Kodiak currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Kodiak’s expectations, plans or forecasts of future events and views as of the date of this press release. These forward-looking statements should not be relied upon as representing Kodiak’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Except as required by law, Kodiak specifically disclaims any obligation to update any forward-looking statements.

About Kodiak AI, Inc.
Kodiak AI, Inc. (Nasdaq: KDK) was founded in 2018 and is a leading provider of AI-powered autonomous vehicle technology that is designed to help tackle some of the toughest driving jobs. Kodiak's driverless solution can help address the critical problem of safely transporting goods in the face of unprecedented supply chain challenges. Kodiak's vision is to become the trusted world leader in autonomous ground transportation. Kodiak is committed to a safer and more efficient future for all through the commercialization of driverless trucking at scale. To that end, Kodiak developed the Kodiak Driver, a virtual driver that combines advanced AI-powered software with modular and vehicle-agnostic hardware designed to help address Kodiak's customers' needs. The Kodiak Driver is not just an idea—it is operating without a human driver today. Kodiak serves customers in the industrial trucking and long-haul trucking industries. In 2024, Kodiak believes it achieved a historic milestone by becoming the first company to deploy customer-owned and -operated driverless trucks in commercial service. The Kodiak Driver is also being utilized in the defense sector, where Kodiak believes it can support national security initiatives and critical government applications.

For more information about Kodiak, please visit https://kodiak.ai/investors. Kodiak’s press kit with videos and images can be found HERE.

About Horizon Technology Finance

Horizon Technology Finance Corporation (Nasdaq: HRZN), externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital, is a leading specialty finance company that provides capital in the form of secured loans to venture capital and private equity-backed companies and publicly traded companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of Horizon is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located throughout the U.S. Monroe Capital is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, opportunistic, structured credit, real estate and equity. To learn more, please visit horizontechfinance.com.

Contacts

Kodiak Media Relations
Daniel Goff
VP of External Affairs
+1 646-515-3933
dan@kodiak.ai

Stacy Morris
Futurista Communications for Kodiak
+1 310-415-9188
stacy.morris@futuristacommunications.com

Kodiak Investor Relations
Lauren Sloane
The Blueshirt Group for Kodiak
Lauren@blueshirtgroup.com

FAQ

What did Kodiak AI (KDK) announce on December 31, 2025?

Kodiak announced a new $30.0M senior secured term loan with Horizon, drawn at closing, replacing its prior facility.

How does the new KDK loan change interest terms and rates?

Interest is prime + 3.50% with a prime floor of 6.50%, reducing the spread by 200 basis points.

When does Kodiak's interest-only period under the new loan run?

Interest-only payments run from Feb 1, 2026 through Jul 1, 2028.

When will Kodiak (KDK) start repaying principal on the new loan?

Principal amortization begins on Aug 1, 2028 with 18 equal monthly payments until maturity.

What is the maturity date of Kodiak's new debt facility?

The Term Loans mature on Jan 1, 2030.

Are there prepayment penalties on Kodiak's new loan and how large are they?

Yes. Prepayment premium is 2.0% if within 24 months, and 1.0% thereafter.

How does the refinancing affect Kodiak's liquidity and cash outflows?

Company says the refinancing reduces near-term cash outflows, increases liquidity, and extends cash runway to support strategic priorities.