Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 35

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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million), (ii) Tranche A-3 ($11.5
million), and (iii) Tranche B ($18.5
million). In addition, the Credit
Agreement permits the Borrowers to request one or more Additional Tranche Loan Commitments (as defined in the Credit Agreement), in the
aggregate amount of up to $64.5
million, subject to the approval of
the Lender and the Agent, for project-level financing of eligible projects. On September 12, 2025, the Borrowers borrowed approximately
$12.6
million under the Credit Agreement,
comprised of Tranche A-1 loans and Tranche A-3 loans. The Company can draw upon Tranche B from September 12, 2025 until October 31, 2026,
subject to the conditions set forth in the Credit Agreement. The maturity date for the Tranche A and Tranche B loans is the earlier of
(i) payment of outstanding principal, interest, and fees and (ii) September 12, 2030. Additional Tranche Loan Commitments will have maturity
dates as set forth in their respective amendments to the Credit Agreement. For the three and nine months ended September 30, 2025, interest
expense was $168
thousand.

Proceeds
from the Generate Credit Agreement will be used to finance, refinance, develop and construct the Company’s Dorothy 1A, Dorothy 2
and Kati data center projects, fund a debt service reserve account, and pay fees and expenses. The loans bear interest at a variable rate
based on either ABR or Term SOFR, as set forth in the Generate Credit Agreement. The applicable interest rate for SOFR loans is equal
to Term SOFR plus a margin of 10.0% per annum, and for ABR loans is equal to the ABR plus a margin of 9.0% per annum. The Generate Credit
Agreement provides for a SOFR rate floor of 3.50% per annum. The Borrowers are required to pay a commitment fee of 1.00% per annum on
undrawn amounts of the Tranche B Loan Commitments and any Additional Tranche Loan Commitments. During the continuance of an event of default,
a default rate applies equal to the otherwise applicable rate plus 2.0% per annum. 

The
loans are subject to scheduled amortization, fees and prepayment premiums which will be paid through excess cash