Genie Energy Ltd. Debt Disclosure

Note 12 — Debt

 

Term Loan

 

On November 18, 2024, the Company, through its subsidiary, SUT Holdings, LLC entered into a Term Loan Agreement with NCB for $7.4 million (the "Term Loan"). The principal amount is payable in installments every January 1, July 1 and October 1 of each year starting on July 1, 2025. Below is the summary of the principal payments per year (in thousands):

 

2026		$	399
2027			418
2028			435
2029			391
2030			388
2031			5,061
Total term loan			7,092
Less: Current portion			399
Noncurrent portion of term loan		$	6,693

 

Interest is accrued on the unpaid balance is payable on each January 1, April 1, July 1 and October 1 calculated using the 3-Month Term Secured Overnight Financing Rate ("SOFR") published by CME Group Benchmark Administration plus a margin of 2.0% computed on the basis of actual number of days over 360 days. The Company has the right to prepay the Term Loan in whole or in part at any time as permitted under specific terms in the Term Loan Agreement. The Term Loan is secured by the Company's operating solar systems located in Ohio, Indiana and Michigan.  The Term Loan is subject to various financial and negative covenants and at December 31, 2025 the Company was in compliance with all such covenants. 

 

The Company capitalized $0.1 million in 2024 in connection with the Term Loan. The Term Loan outstanding balances were $7.1 million and $7.4 million at December 31, 2025 and 2024, respectively, with weighted average interest rates 6.2% and 6.5%, respectively.

 

The Company also entered into a Cash Management Agreement with NCB to manage the cash flows of the operations of collateralized solar projects. The Cash Management Agreement also provided certain restriction on certain cash accounts specified in the agreements. At December 31, 2025, an aggregate of $3.8  million is deposited in NCB and are subject to certain restrictions.

 

Credit Agreement with JPMorgan Chase Bank 

 

On December 13, 2018, the Company entered into a Credit Agreement with JPMorgan Chase Bank (“Credit Agreement”). On October 12, 2025, the Company entered into an amendment of its existing Credit Agreement to extend the maturity date of December 31, 2026. The aggregate principal amount was retained at $3.0 million credit line facility (“Credit Line”). The Company pays a commitment fee of 0.1% per annum on the unused portion of the Credit Line as specified in the Credit Agreement. The borrowed amounts will be in the form of letters of credit which will bear interest of 1.0% per annum. The Company will also pay a fee for each letter of credit that is issued equal to the greater of $500 or 1.0% of the original maximum available amount of the letter of credit. The Company agreed to deposit cash in a money market account at JPMorgan Chase Bank as collateral for the line of credit equal to $3.1 million. At December 31, 2025, there are $1.0 million letters of credit issued by JP Morgan Chase Bank. At December 31, 2025, the cash collateral of $3.3  million was included in restricted cash—short-term in the consolidated balance sheet.