Company: SLNH
Filing Date: 2025-03-18
Form Type: 8-K
Source: 0001493152-25-010691
Chunk: 1

Company: Soluna Holdings, Inc
Filing Date: 2025-03-18
Form: 8-K
Item: Item 1.01
Chunk 1
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make investments, make Restricted Payments (as defined therein), enter into burdensome agreements or transact with affiliates. In
addition, the Loan Parties are subject to two financial covenants - a minimum debt service coverage ratio and a minimum current
ratio.

Proceeds
of the Term Loan Facility will be used to issue a distribution to Holdings, the proceeds of which may be used to make a distribution
to Parent.

In
connection with the Loan Agreement, on March 12, 2025, the Loan Parties and the Lender entered into a security agreement (the
“ Security Agreement”) to secure the obligations under the Term Loan Facility by a lien on substantially all the assets and
properties of Borrower and Holdings, subject to certain exceptions. The Borrower is the owner and operator of the Company’s Project
Sophie data center.

In
connection with the Loan Agreement, on March 12, 2025, Parent and the Lender entered into a Limited Guarantee Agreement (the “ Guaranty
Agreement”) pursuant to which Parent guarantees the Loss Liabilities (as defined therein) and, after the occurrence of a Recourse
Trigger Event (as defined therein), the obligations under the Loan Agreement.

The
foregoing description of the Loan Agreement, Security Agreement and Guaranty Agreement do not purport to be complete and are subject
to, and qualified in its entirety by, the full text of the Loan Agreement, Security Agreement and Guaranty Agreement, copies of which
are filed hereto as Exhibits 10.1, 10.2 and 10.3, respectively, and are incorporated into this Item 1.01 by reference.

Item
2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.