Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 167

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 167
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 are subject
to the payment of a premium amount equal to 50% of the remaining amount of interest payable on such principal amount through the scheduled
maturity date, if paid on or prior to the 30-month anniversary of the closing date, and 25% of the remaining amount of interest payable
on such principal amount through the scheduled maturity date, if paid after the 30-month anniversary of the closing date.

The
Galaxy Loan Agreement includes certain restrictions (subject to certain exceptions outlined in the Galaxy Loan Agreement) on the ability
of the SW Loan Parties and their subsidiaries to undertake certain activities, including to incur indebtedness and liens, enter into
sale or lease-back transactions, merge or consolidate with other entities, dispose or transfer their assets, pay dividends or make distributions,
make investments, make Restricted Payments (as defined therein), enter into burdensome agreements or transact with affiliates. In addition,
the SW Loan Parties are subject to three financial covenants – a minimum debt service coverage ratio, a minimum current ratio,
and cash in customer deposit account must equal or be greater than related customer liabilities. As of the date of these condensed consolidated
financial statements, the Company is in compliance with all covenants in relation to the Galaxy Loan Agreement.

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

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

In
connection with the Galaxy Loan Agreement, on March 12, 2025, SDI and the Lender entered into a Limited Guarantee Agreement pursuant
to which SDI 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.

Generate
Credit Agreement

 Schedule
of Generate Credit Agreement

    (Dollars in thousands) 
    Maturity
    Date 
    Interest
    Rate  
    September 12, 2025
                                                                               – September 30, 2025 
  
    Tranche A-1 
    September 12, 203