Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 20

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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debt is recorded net of debt issuance costs of $9.6 million and $27.3 million as of March 31, 2025 and December 31, 2024, respectively.
Debt issuance costs are recorded as a debt discount and amortized to interest expense over the life of the debt, upon the close of the
related debt transaction, in the Consolidated Balance Sheet. Interest expense stemming from amortization of debt discounts for continuing
operations for the three months ended March 31, 2025 and March 31, 2024 was $1.4 million and $0.5 million, respectively.

There was no interest expense
stemming from amortization of debt discounts for discontinued operations for the three month periods ended March 31, 2025 and March 31,
2024 respectively.

Senior secured debt:

In May 2022, AEG MH02 entered
into a loan agreement with a group of private lenders of approximately $10.8 million with an initial stated interest rate of 8% and a
maturity date of May 31, 2023. In February 2023, the loan agreement was amended stating a new interest rate of 16% retroactive to the
date of the first draw in June 2022. In May 2023, the loan was extended, and the interest rate was revised to 18% from June 1, 2023. In
July 2023, the loan agreement was further extended to October 31, 2023. In November 2023, the loan agreement further extended to May 31,
2024. On December 31, 2024, the loan agreement was further extended to September 30, 2025 while also stating any accrued interest up to
the date of the amendment was to be added to the principal loan balance. As a result of these amendments, $3.2 million of interest was
recognized during the year period ended December 31, 2024, $5.9 million of accrued interest was added to the existing loan balance. On
May 7, 2025, AEG MH02 was sold and the note was assumed by the Buyer. See Footnote 16 for more information. The Company had principal
outstanding of $16.6 million and $16.0 million as of March 31, 2025 and December 31, 2024, respectively.

In July 2023, Alt Spain Holdco,
one of