Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1155

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 2
Chunk 1155
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 financing facility with Deutsche Bank
AG (“Lender”). This is a committed revolving debt financing of €80,000,000 to finance eligible project costs for the
acquisition, construction, and operation of installation/ready to build solar PV plants across Europe, including the capacity for the
financing to be upsized via a €420,000,000 uncommitted accordion facility to finance a pipeline of further projects across Europe
with a total combined capacity of 600 MWp (the “Warehouse Facility”). The Warehouse Facility, which matures on the third anniversary
of the closing date of the Credit Agreement (the “Maturity Date”), bears interest at Euribor plus an aggregate margin at a
market rate for such facilities, which steps down by 0.5% once the underlying non-Euro costs financed reduces below 33.33% of the overall
costs financed. The Warehouse Facility is not currently drawn upon, but a total of approximately €1,800,000 in arrangement and commitment
fees is currently owed to the Lender. Once drawn, the Warehouse Facility capitalizes interest payments until projects reach their commercial
operations dates through to the Maturity Date; it also provides for mandatory prepayments in certain situations.

    15.
    Leases

The Company determines if
an arrangement is a lease or contains a lease at inception or acquisition when the Company acquires a new park. The Company has operating
leases for corporate offices and land with remaining lease terms of 3 to 31 years.

Operating lease assets and
operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement
date. As most of the Company’s leases do not provide an implicit rate, the Company estimates its incremental borrowing rate based
on information available at the commencement date in determining the present value of future payments. Lease expense related to the net
present value of payments is recognized on a straight-line basis over the lease term.

F-36

The key components of the
company’s operating leases were as follows (in thousands):

     December 31,   December 31,      2024   2023   Operating Lease - Operating Cash Flows (Fixed Payments)   -    142   Operating Lease - Operating Cash Flows (Liability Reduction)   43    83                New ROU Assets - Operating Leases   -    409