Kodiak AI refinances debt facility with $30M at lower rates

Kodiak AI Inc. (NASDAQ: KDK) completed a refinancing of its senior debt facility with Horizon Technology Finance Corporation (NASDAQ: HRZN), establishing a new $30 million term loan with improved terms, according to a company statement.

The new facility reduces the interest rate by 200 basis points compared to the previous debt arrangement and extends the maturity date from 2026 to January 2030. The venture loan provides the full $30 million principal amount, which was drawn at closing.

Under the loan agreement, borrowings accrue interest at the prime rate plus 3.50%, with the prime rate having a floor of 6.50%. The facility includes an interest-only payment period from February 2026 until July 2028, followed by 18 equal monthly payments of principal and interest until maturity.

The agreement includes prepayment provisions with a 2% premium if prepayment occurs within 24 months of closing, and a 1% premium thereafter. Kodiak filed details of the transaction in a Form 8-K with the Securities and Exchange Commission.

"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," said Don Burnette, founder and CEO of Kodiak.

Kodiak develops autonomous driving technology for commercial trucking applications. The Mountain View, California-based company was founded in 2018 and went public through a listing on the Nasdaq exchange.

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