Kodiak AI secures $30M Horizon term loan to refinance debt and boost liquidity

Kodiak AI Secures $30M Venture Term Loan From Horizon Technology Finance

Kodiak AI (ticker: KDK) closed a new senior secured term loan facility of up to $30.0 million with Horizon Technology Finance and terminated its 2022 facility with the same lender. The company drew the full $30.0 million at closing to refinance existing debt and fund working capital and general corporate needs.

The loan carries interest at prime plus 3.50%, with a 6.50% floor on prime. That sets a minimum cash coupon of 10.00% until prime drops below 6.50%. Payments are interest-only through July 1, 2028, with final maturity on January 1, 2030.

Key Terms at a Glance

• Facility: Senior secured term loan (Venture Loan and Security Agreement)
• Lender: Horizon Technology Finance
• Size: Up to $30.0 million (fully drawn at close)
• Pricing: Prime + 3.50% (prime floor: 6.50%)
• Payment profile: Interest-only through July 1, 2028
• Maturity: January 1, 2030
• Use of proceeds: Refinance existing indebtedness; support working capital and general corporate purposes
• Security: Senior secured

What Changed

• New agreement: Signed and effective December 31, 2025; runs through January 1, 2030
• Prior facility: 2022 Venture Loan and Security Agreement with Horizon Technology Finance
• Termination: Early termination on December 31, 2025, replaced by the new term loan

Why It Matters for Finance Teams

• Liquidity: Full draw at close, interest-only until mid-2028, and a single maturity date help smooth near-term cash needs and simplify planning.
• Cost of capital: Float at prime with a 6.50% floor plus 3.50% spread keeps the minimum rate at 10.00%, concentrating expense in cash interest rather than amortization in the early years.
• Capital structure: Replaces the 2022 debt and consolidates terms under one lender, which can reduce operational friction and covenant complexity.

Transaction Timeline

• Signed/Effective: December 31, 2025
• Interest-Only Period: Through July 1, 2028
• Maturity: January 1, 2030

What to Watch Next

• Cash interest sensitivity to prime and the impact of the floor on total debt service.
• Any detailed covenants, prepayment provisions, or fees disclosed in the filing.
• Refinancing runway heading into 2029-2030 based on operating performance and market conditions.

Source

See the company's disclosure on the SEC site: SEC Form 8-K (Dec 31, 2025). Lender details: Horizon Technology Finance.