Loan & DebtJun 3, 2026, 04:13 PM
Fathom Holdings Increases Debt, Raises Interest Rates Amid Filing Delays
AI Summary
Fathom Holdings Inc. has amended its financing agreements. The company increased its bridge note principal with BBBY by $1 million to $3.04 million and amended its senior secured convertible notes to raise the minimum interest rate floor to 10%. A default interest rate of 18% will apply until the overdue Q1 2026 financial filing is submitted. Holders have waived existing defaults until October 1, 2026, but failure to file by then could lead to debt acceleration.
Key Highlights
- Fathom Holdings amended and restated its bridge note with BBBY, increasing the principal by $1M to $3.04M.
- The company also amended its senior secured convertible notes, increasing the minimum interest rate floor from 8% to 10%.
- A default rate of 18% per annum will apply to outstanding principal from the Q1 2026 10-Q filing deadline until it is filed.
- Holders waived existing defaults related to the Q1 2026 filing until October 1, 2026, provided the company cures the default.
- Failure to file the Q1 2026 10-Q by October 1, 2026, will result in automatic termination of the waiver and potential acceleration of debt.
- The company agreed to reimburse holders for legal fees up to $5,000.
Price Impact
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