Interest Rate Swaps

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

In connection with the acquisition of Legacy Spruce Power, the Company assumed interest rate swaps from agreements Legacy Spruce Power executed with four financial institutions. The purpose of the swap agreements is to convert the floating interest rate on the Company's debt obligation under its credit agreements to a fixed rate. As of December 31, 2023 and 2022, the notional amount of the interest rate swaps covers approximately 95% and 97% of the balance of the Company’s floating rate term loans, respectively.

As of December 31, 2023, the following interest rate swaps are outstanding (in thousands):


#	Notional Amount		Fixed Rate		Effective Date	Early Termination Date	Maturity Date	Total Fair Value Asset (Liability)

1	$	12,459	0.78	%	4/30/2020	4/30/2026	1/31/2031	$	1,231
2	12,459		0.75	%	4/30/2020	4/30/2026	1/31/2031	1,243
3	12,459		0.73	%	4/30/2020	4/30/2026	1/31/2031	1,273
4	4,406		1.57	%	10/31/2019	4/30/2026	1/31/2031	332
5	7,711		1.62	%	10/31/2019	4/30/2026	1/31/2031	564
6	7,711		1.56	%	10/31/2019	4/30/2026	1/31/2031	587
7	7,711		1.59	%	10/31/2019	4/30/2026	1/31/2031	572
8	41,464		2.39	%	7/31/2019	4/30/2026	10/31/2031	1,914
9	41,464		2.33	%	7/31/2019	4/30/2026	10/31/2031	2,029
10	23,693		2.34	%	7/31/2019	4/30/2026	10/31/2031	1,144
11	41,464		2.36	%	7/31/2019	4/30/2026	10/31/2031	1,962
12	28,837		0.69	%	01/31/2023	11/13/2027	10/31/2032	3,646
13	28,837		0.73	%	01/31/2023	11/13/2027	10/29/2032	3,601
14	17,647		2.83	%	07/12/2022	5/14/2027	04/30/2032	554
15	44,418		0.40	%	07/12/2022	5/14/2027	10/31/2031	5,557
16 (1)	110,151		3.27	%	06/14/2022	8/18/2025	11/17/2033	1,288
17 (1)	18,998		4.24	%	08/18/2023	—	01/31/2032	(457)
	$	461,889						$	27,040

(1) The amounts reflect, respectively, the Deutsche Bank swap assumed by the Company as part of the SEMTH Acquisition and an additional swap related to the SP2 Facility Amendment transacted concurrently with the Tredegar Acquisition to hedge the floating rate of the incremental term loans (See Note 8. Non-Recourse Debt).

During the year ended December 31, 2023, the aggregate change in the fair value of the interest rate swaps was $8.9 million, of which $4.8 million related to unrealized losses as reflected in the consolidated statements of operation and $13.7 million related to realized gains and is recognized within interest expense, net.

During the year ended December 31, 2022, the aggregate change in the fair value of the interest rate swaps was $7.7 million, of which $5.6 million related to unrealized gains as reflected in the consolidated statements of operation and $2.1 million related to realized gains and is recognized within interest expense, net in the consolidated statements of operations.

See Note 11. Fair Value Measurements for further information on the Company’s determination of the fair value of its interest rate swaps.