Company: SLNH
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023503
Chunk: 34

Company: Soluna Holdings, Inc
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 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, 2030 
     14.24% 
    $5,500 
  
    Tranche A-3 

     7,124 
  
    Total drawn loan 

     12,624 
  
    Less: principal payments 

     - 
  
    Less: debt discount and
    issuance costs 

     (1,839)
  
    Total outstanding note 

     10,785 
  
    (Less) Current note outstanding 

     5,876 
  
    Long-term note outstanding 

    $4,909 

    20

On
September 12, 2025, the Company caused its subsidiaries Soluna DVSL ComputeCo, LLC (“Dorothy 1A Borrower”), Soluna DVSL II
ComputeCo, LLC (“Dorothy 2 Borrower”), and Soluna KK I ComputeCo, LLC (“Tranche B Borrower” and collectively
with Dorothy 1A Borrower and Dorothy 2 Borrower, the “Borrowers”) to enter into a Credit and Guaranty Agreement (the “Credit
Agreement”) with Generate Lending, LLC, as administrative agent and collateral agent (the “Agent”), and Generate Strategic
Credit Master Fund I-A, L.P. (the “Lender”). The Credit Agreement provides for senior secured term loan commitments in an
aggregate principal amount of up to $35.5
million, comprised of (i) Tranche
A-1 ($5.5